3GWeek - Asia’s Mobile News

The largest mobile manufacturer, Nokia, finally unveils its awaited Q3 financial report. Awaited since in this middle of global financial crisis, Nokia’s report can be a clue about how is the current condition of mobile world. Nokia booked EUR 1.469 billion, 21% decreased from Q3 2007. Yet, compared to Q2, the profit is quite stable. Also Nokia got EUR 12.2 billion in net sales, a billion decreased compared to previous quarter.

Here are the highlight of Nokia’s Q3 financial result:

• Nokia net sales of EUR 12.2 billion, down 5% year on year and down 7% sequentially (up 1% and down 7% at constant currency).
• Devices & Services net sales of EUR 8.6 billion, down 7% year on year and down 5% sequentially (down 1% and 5% at constant currency).
• Services and software net sales of EUR 115 million (billings of EUR 140 million).
• Estimated industry mobile device volumes of 310 million units, up 8% year on year and up 2% sequentially.
• Nokia mobile device volumes of 117.8 million units, up 5% year on year and down 3% sequentially.
• Nokia estimated mobile device market share of 38%, down from 39% in Q3 2007 and down from 40% in Q2 2008.
• Nokia mobile device ASP of EUR 72, down from EUR 74 in Q2 2008.
• Devices & Services gross margin of 36.5% up sequentially from 36.1% in Q2 2008.
• NAVTEQ net sales of EUR 156 million and non-IFRS operating margin of 18.5%.
• Nokia Siemens Networks net sales of EUR 3.5 billion, down 5% year on year and down 14% sequentially (flat and down 14% at constant currency).
• Total cash and other liquid assets of EUR 7.2 billion at the end of Q3 2008.

Nokia’s CEO, OLLI-PEKKA KALLASVUO, in optimistic tone said:

As a result of our strong operational management and market position, Nokia was able to achieve solid margins and operating cash flow of 1.3 billion euros for the third quarter of 2008. With our scale, brand, improving product portfolio and low cost structure, we believe Nokia is well positioned for the current times.

Good for Nokia then. It is still be able to make profit in this uncertain condition. What about other mobile manufacturers? Let’s wait for them to publish their financial result.