Nokia earnings down, but not out
Nokia’s market share is finally showing the vendor’s plight in its true colors, with 15% knocked off its smartphone share year-on-year during 1Q11, and 5% from its overall figure.
The firm estimates it took a 29% share of the total mobile device market during 1Q11 based on total industry volumes of 374 million units, down from 33% in 1Q10. Its smartphone share fell from 41% a year ago to 26% in the recent quarter, based on overall shipments of 92.3 million units, however the firm attributes this to a greater focus on low- and mid-tier units.
Earnings at the devices and services business fell accordingly, with operating profit down 17% to €690 million and operating margin falling from 12.5% to 9.7% year-on-year.
While the handset business’ profits were lower, it was the only Nokia business unit to make money during 1Q11. Losses from its Navteq mapping business fell from €77 million to €62 million in 1Q11, while Nokia Siemens Networks' losses hit €142 million - down from €226 million in 1Q10.
Despite its struggles, Nokia raised group profit from €175 million in 1Q10 to €231 million in the recent quarter, as sales grew 9% to €10.4 billion.