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high-end smart phones were blocked, Nokia released Q2 earnings

Nokia released the Nokia earnings report of the second quarter on 22, according to financial reports show, the Nokia net sales of second quarter in 2010 reach ten thousand million Euros, sales terminals have a small number of growth rate, and there is a certain increase in net sales However, gross margin and terminal market share has slipped.

Data:
The net sales of Nokia is 10.0 billion Euros in the second quarter, an increase of 1% and 5% growth than the previous quarter; the net sales of “terminal and services business,” is 6.8 billion Euros, up 3% sequentially and increase 2% than the previous quarter; Nokia cell phone sold 111.1 million mobile terminal in second-quarter, an increase of 8% and up 3% sequentially than the previous quarter.

Nokia’s converged mobile devices, including smart phones and the net book, a total of 24 million units have been sold, up 42%, 12% growth than the previous quarter. But the Nokia mobile device average selling price (including service income) fell 1 Euro than Q1 quarter, is 61 Euros. Equipment and services gross margin was 30.2%, respectively, lower than the 2009 second quarter 34% and 32.4% in the first quarter of this year-Wholesale cell phones.

Nokia’s net sales of high-end market disruption

Expect as the same as previously, a variety of negative factors affecting the Nokia “terminal and services business,” the second quarter, and this influence will continue into the third quarter of this year. Compared to 6.6 billion Euros of net sales in 2009, Nokia increased by only 3% the second quarter, reaching 6.8 billion U.S. dollars; compared with the previous quarter, it grew only 2%. According to foreign media analysis, blocked up the Nokia sales reflected in the high-end market.

Nokia’s market share is 33% flat compared with the first quarter,

In the second quarter, Nokia sold 111.1 million mobile terminals, with an increase of 8% over the same period last year, up 3% sequentially. According to Nokia’s preliminary estimates, the quarter, the entire industry mobile device sold about 338 million, with growth of 14% compared over the same period in 2009, up 5% sequentially. However, the Nokia 2010 market share in the second quarter decline 35% than the same period in 2009, and unchanged compared to first quarter of 2010 with 33%.

Nokia mobile intelligent terminal market share was flat with 41% in the first quarter
According to Nokia estimates, the total sales Nokia smart phones and notebook reach 59 million in the second quarter, while the 2009 second quarter and the first quarter of this year were 41 million and 52.6 million, up 42%, growth of 12% period-on-period. In addition, Nokia also said its 2010 second quarter smart market share is 41%, and the same as 41% in the second quarter in 2009and 41% market share in first quarter of 2010.
The reason of the growth of Nokia device volumes
the main reasons for Nokia’s second quarter sales rose 8% is, compared to the sluggish economic situation in the second quarter of 2009, the quarter’s economic situation in most parts of the world become increasingly optimistic, stimulating the demand for mobile terminals . However, this part of the growth has been offset by a decline in sales in North America to some extent. Nokia’s global mobile device sales sequentially grew 3%. This reflects the seasonal growth of Latin America, Europe and Asia-Pacific region. But to some extent offset by large lower seasonal demand in China and the weak demand of Middle East and North America.

The reason of the decline of Nokia device volumes price
Nokia’s average selling price was 61 Euros in the second quarter, lower than the same period in 2009 of 64 euros and 62 euros in the previous quarter, the main reason is that the proportion of low-cost smart phone sales rise and price pressure, particularly some high-end smart phone market; and compared with the previous quarter, there has a decline also. Nokia think that the reason is also the price pressures, especially the price pressure of high-end smart phone market.

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