Stockholm, Sweden — Nokia reported steep double-digit decreases in net sales and operating profits for the first quarter.
Net sales were $12.3 billion in the quarter, down 26.7 percent, while operating profit for the quarter was $72.8 million, down a whopping 96.4 percent.
Nokia said it expects industry mobile device volumes to be at the same level or slightly higher than last year and expects to increase its mobile device share during the quarter.
North America mobile device volume was a lone gainer for Nokia vs. other geographic areas with unit shipments at 3.4 million, a gain of 30.8 percent compared with last year’s first quarter. In total, Nokia shipments were down 19.3 percent worldwide to 93.2 million units.
Olli-Pekka Kallasvuo, Nokia CEO, commented, “Regarding the healthy of the overall mobile device market, the inventory already in the sales channels decreased substantially during Q1 due to extensive destocking by operators and distributors. This adversely impacted our sales volumes in the quarter. However, it has also resulted in the demand picture becoming more predictable as we enter the second quarter.”