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Nokia Profits down by 96% |
jcwhite_uk
Joined: Feb 18, 2004
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Nokia's first quarter 2009 reported operating profit decreased 96% to EUR 55 million, compared with EUR 1.5 billion in the first quarter 2008. Nokia's first quarter 2009 non-IFRS operating profit decreased 74% to EUR 514 million, compared with EUR 2.0 billion in the first quarter 2008. Nokia's first quarter 2009 reported operating margin was 0.6% (12.1%). Nokia's first quarter 2009 non-IFRS operating margin was 5.5% (15.7%).
Operating cash flow for the first quarter 2009 was EUR 276 million. Operating cash flow for the first quarter 2008 was EUR 757 million. Total cash and other liquid assets were EUR 8.1 billion at March 31, 2009, compared with EUR 10.4 billion at March 31, 2008. At March 31, 2009, Nokia's net debt-equity ratio (gearing) was -14%, compared with -53% at March 31, 2008.
Devices & Services
In the first quarter 2009, the total mobile device volumes of our Devices & Services group were 93.2 million units, representing a decline of 19% year on year and 18% sequentially. The overall industry mobile device volumes for the same period were 255 million units based on Nokia's preliminary estimate, representing a 14% year on year decrease and a 16% sequential decrease. The lower sales volumes for Nokia and the industry, both year on year and sequentially, were primarily driven by the negative impact of the rapidly deteriorating global economic conditions, including weaker consumer and corporate spending, severely constrained credit availability and unprecedented currency market volatility. The sequential volume decline also reflected typical seasonal decreases in the first quarter. In addition, extensive destocking by operators and distributors of their mobile device inventories adversely affected sales volumes by manufacturers, including Nokia, during the first quarter 2009.
Of the total industry mobile device volumes, converged mobile device industry volumes in the first quarter 2009 increased to 36.0 million units, based on Nokia's preliminary estimate, compared with an estimated 33.3 million units in the first quarter 2008. Our own converged mobile device volumes were 13.7 million units in the first quarter 2009, compared with 14.6 million units in the first quarter 2008 and 15.1 million units in the fourth quarter 2008. We shipped approximately 5 million Nokia Nseries and over 3 million Nokia Eseries devices during the first quarter 2009.
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Radu_91
Joined: Sep 14, 2008
Posts: 201
From: Romania
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they should reduce the price of the phones to sell more, ussualy Nokia phones are much more expensive than their rivals. |
recl
Joined: Nov 25, 2007
Posts: 251
From: Romania
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that's cause they're a brand. they like to think of themselves as having the best phones on the market. if their price will go down they'll be just like any other company
what did the other companies do?
[ This Message was edited by: recl on 2009-04-16 13:23 ] |
razec
Joined: Aug 20, 2006
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From: Pearl of the Orient Seas
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96% down!  what more with SE?
~19 years at Esato |
Supa_Fly
Joined: Apr 16, 2002
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From: Toronto, Ontario
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On 2009-04-16 14:09:20, Radu_91 wrote:
they should reduce the price of the phones to sell more, ussualy Nokia phones are much more expensive than their rivals.
http://www.reuters.com/articl[....]logyNews/idUSTRE53F24O20090416
On 2009-04-16 8:00:00, Nokia Chief Executive Olli-Pekka Kallasvuo wrote:
the amount of unsold cellphones in stores and warehouses had decreased substantially in the quarter.
"(This) has also resulted in the demand picture becoming more predictable as we enter the second quarter," he said.
Nokia's Chief Financial Officer Rick Simonson told Bloomberg TV it was too early to call the bottom of the market. To cope with slowing demand Nokia has focused on cost cuts in early 2009, slashing jobs across its operations while also halting the use of subcontractors in phone manufacturing.
The margin at the handset unit fell to 10.4 percent in the quarter, but beat analysts' average forecast of 8.6 percent.
Its not ALL doom and gloom. You have to READ between the numbers ppl. Wait until SE reports you won't find Nokia's as bad.
* Sony Ericsson has said it will report a massive first quarter loss on Friday, with smaller rival Motorola also struggling.
(from the same link; Reuters)
Samsung reports on Monday, Recl and I'll BET that their sales jumped almost 60% but thats for QWERTY-based and Touchscreen-based phones; the current trend.
However, SonyEricsson may NOT do to well as the trend away from feature phones is staggaring! LG is also tomorrow I believe.
These reports by Nokia was expected by the Industry and paves the way for future profits. A reduction of 540 Billion in production costs - no more 3d party manufacturers means: LESS returns due to quality build issues N85 is an example after initial release. Also less costs for parts as locations for sourcing will be reduced.
http://www.reuters.com/articl[....]logyNews/idUSTRE53F24O20090416
2009-04-16 8:00AM EST byTarmo Virki, European technology correspondent wrote:
HELSINKI (Reuters) - The world's top cell phone maker Nokia calmed jittery investors on Thursday by reaffirming its forecast for the handset market and saying visibility was improving, sending its shares higher.
January-March sales fell 27 percent as the economic downturn sapped demand for new phones, with the firm reporting a historic 12-million-euro ($15.79 million) loss before taxes, its first-ever quarterly pretax loss.
The cell phone market is facing its toughest year ever in 2009, with Nokia repeating its forecast for market volumes to fall around 10 percent.
But Nokia shares gained a much as 10 percent, cheered by the firm holding steady on its outlook after a grim quarter marked by mostly negative news. At 1143 GMT (7:43 a.m. EDT) the share was up 8.2 percent at 10.96 euros.
2 pages of pretty good reports in favor of Nokia.
http://www.reuters.com/articl[....]logyNews/idUSTRE53F25O20090416
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Bonovox
Joined: Apr 13, 2008
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96% are you kidding me?
Phone?? What phone?? |
djin
Joined: Jun 13, 2007
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I dont find nokia's phones to be overpriced tho, They should catch up on the sales in h2 when they release n97 and all.
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Tsepz_GP
Joined: Dec 27, 2006
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From: Johannesburg, South Africa
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On 2009-04-16 20:13:57, djin wrote:
I dont find nokia's phones to be overpriced tho, They should catch up on the sales in h2 when they release n97 and all.
Ye exactly, the N82, N95-8gb, 5800xm, N79 and N85 are all very well priced for what you get, the only Nokia i can think of that can be called overpriced is the N96 but even that is about to get a major fw update that will change many minds. 
Unlucky for Nokia and its results.
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Bonovox
Joined: Apr 13, 2008
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No i find SE phones more pricey with the exception of a few. Nokia has done well so far with phones like the 5800 which is well priced for the spec. Its fast selling.
Phone?? What phone?? |
iannicholson
Joined: Apr 22, 2009
Posts: 3
From: Sydney
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Well, the catastrophe that was the N96 could not have helped. Nokia had a chance to shine with an A1-spec phone to kick the iPhone's pants, but instead cheated and short-changed their customers with an inferior phone that was way overpriced.
In addition, once cursing their customers with this garbage, proceeded to annoy them further with poor customer service and long delays between firmware upgrades.
The moment a company puts its shareholders feelings before those of its customers, then it surely is only a matter of time before those customers take action - and vote with their feet. And THAT kind of vote can have a far more devastating effect than ANY shareholder vote.
Nokia should take a good, long, hard look at themselves before they even THINK about acquiring another customer. In my book, they've lost the plot, and that's evident when you call them and get some stroppy Generation-Y-type taking customer calls and rubbing them further up the wrong way!
Rant over! |
carkitter
Joined: Apr 29, 2005
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From: Auckland, NZ
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I find it interesting that the total market for 'converged devices' grew but Nokia's share slipped as did SE's... is the big winner in this category Apple? Wouldn't surprise me.
Also it must be a concern for Nokia than their converged market total of 13.7M is only a small fraction of their overall total of 93.2M units. That means they're mostly selling low end phones with low ASP and low margins. Nokia won't want to lower prices and further affect ASP but if they're stockpiling phones due to network 'de-stocking' then they might have to. 
Its fascinating that Nokia share price went up, is this a reflection perhaps of the recessionary trend of investment to flow towards established market leaders? One certainly wouldn't want to invest in SE or Motorola at the moment while Apple's share price depends solely on Steve Jobs state of health.
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Daedalus85
Joined: Apr 23, 2007
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From: Suffolk, UK
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On 2009-04-16 20:26:19, GUCCI.011 wrote:
Ye exactly, the N82, N95-8gb, 5800xm, N79 and N85 are all very well priced for what you get
I think you could probably add the E71 to that list. It did Nokia very well for Q4 and is a fantastic handset for not alot of money (RRP 220 ish)
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gtr83
Joined: Sep 27, 2008
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From: Indonesia
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I guess they cursed themselves when they released N96. |
carkitter
Joined: Apr 29, 2005
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From: Auckland, NZ
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On 2009-04-22 17:25:31, carkitter wrote:
is the big winner in this category Apple? Wouldn't surprise me.
Yup, I thought so:
http://www.trustedreviews.com[....]/Apple-Quarterly-Results-In/p1 | |
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Posted: 2009-04-16 13:36
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