Nokia, Sony Ericsson Report Lower Q2 Sales

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New York - Nokia and Sony Ericsson reported lower euro sales and units of mobile devices for the second quarter, ended June 30.

While Nokia's net profit fell 66 percent in the quarter compared with the previous year, Sony Ericsson reported a loss of 274 million euros compared with a 2 million euro loss in last year's second quarter.

Nokia had net sales of 9.9 billion euros, down 25 percent year on year. Nokia reported mobile device unit sales of 103.2 million units, down 15 percent year on year.

Nokia said its mobile device market share was 38 percent in the quarter, down 2 percent from the same time last year.

Nokia also reported that Navteq net sales were 147 million euros, up 11 percent sequentially.

In a statement Olli-Pekka Kallasvuo, CEO, said, "Nokia put in a solid performance in what was another tough quarter. We increased our share of the global mobile device market sequentially to an estimated 38 percent and grew our smartphone market share to an estimated 41 percent. As a result of strong operational execution, underlying operating margins improved sequentially in all segments. Competition remains intense, but demand in the overall mobile device market appears to be bottoming out. As before, we are continuing to tightly manage our operating expenses."

He added, "We are balancing short-term priorities with our longer-term growth ambitions as elements of the mobile handset, PC, Internet and media industries converge to form a new industry. Consumers will increasingly expect devices and services designed as integrated solutions. To capture this opportunity we are accelerating our strategic transformation into a solutions company."

Nokia expects industry mobile device volumes in the third quarter 2009 to be at approximately the same level or up slightly sequentially. It expects its mobile device market share in the third quarter 2009 to be approximately at the same level sequentially and flat with 2008.

Nokia predicted 2009 industry mobile device volumes to decline approximately 10 percent from 2008 levels.

Sony Ericsson's sales were 1.68 billion euros for the quarter, a yea- on-year decrease of 40 percent due to "challenging marketing conditions in all regions," especially in Latin America. Unit shipments were 13.8 million, a decrease of 43 percent year on year.

"As expected, the second quarter was challenging, and we still believe the remainder of the year will be difficult for Sony Ericsson," said Dick Komiyama, president. "Our focus remains on brining the company back to profitability and growth as quickly as possible, due to our cost reduction activities," he said.

Sony Ericsson forecasts that the global handset market will be down by at least 10 percent this year, from around 1.19 million units in 2008. The company estimated its market share at around 5 percent in the second quarter.


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