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Sunday 19th of July 2009
July 17, 2009

Nokia profits slump 66%


by David Masters
”Nokia

Profits at Nokia slid 66% in the second quarter on a 24% drop in net sales.

Profit for the three months ending 30 June was €380 million (£330 million) on sales of €9.91 billion.

The Finnish mobile phone maker remains optimistic despite the result, pointing out that on a quarter-by-quarter basis, profits increased 7% and sales were up 50%.

Market share for the world leader fell slightly to 38%, down from 40% a year ago.

However, its share in the smartphone market increased three percentage points to 41%.

“Nokia put in a solid performance in what was another tough quarter,” said CEO Olli-Pekka Kallasvuo.

The small on-quarter increase in profit indicates the worst of the recession has passed, Kallasvuo said.

“Competition remains intense, but demand in the overall mobile device market appears to be bottoming out.”

Nokia is rethinking its product offerings, Kallasvuo said, to meet consumer expectations of integrated mobile and computing devices.

“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.”

Dr Tero Ojanperä, Nokia’s executive vice president of services, said the company’s growth in the smartphone segment is good news, as these will be the most important handsets in the future.

Shares in Nokia dropped 12.6% following the announcement.

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