By Salman - iStockAnalyst Writer)Nokia (NYSE: ) will publish its second quarter
percent decline in net income, analyst’s estimate, as customers, concerned about uncertainty in job market, postponed phone upgrades. Nokia is seen selling 99.3 million phones in the quarter, a drop of 19% from a year ago.
Espoo, Finland-based Nokia Oyj manufactures mobile devices, and provides Internet services and digital map information worldwide. The company’s Devices & Services segment designs, develops, and manages its mobile device portfolio, including the sourcing of components.
During the first quarter, earnings for the world's largest cell phone maker plummeted to €122 million -- down from €1.2 billion a year earlier. Revenue declined from €12.6 billion to €9.2 billion compared to a year ago. On a per-share basis, Nokia reported a €0.03 profit, down sharply from the €0.32 profit it posted a year ago and below financial analysts' estimates of a €0.06 profit.
Thanks to the reductions in inventory in markets such as Asia Pacific and Latin America, Nokia's worldwide sales reached 97.4 million units in the first quarter of 2009. However, average selling price (ASP), which saw an 18% drop year-over-year.
The company expects sales volumes in the second quarter to be flat or slightly up from what it saw in the first quarter.
Broadpoint AmTech analyst Mark McKechnie of Greenwich-based expects Nokia to report revenue of €10 billion (or $13.5 billion) and earnings per share of €0.13 (or $0.17). According to McKechnie, thoughASPs [i.e., average selling prices] and margins remain depressed, units are tracking better than expected. He says further that some "green shoots" could be spotted, especially after the retailer de-stocking of the first quarter.
According to technology research firm Gartner, Nokia continued to lead the mobile phone market in first quarter, though its share dropped to 36.2% from 39.1% in Q1 2008 due to severe recession. The company has enjoyed huge success in emerging markets, especially China and India.In the first quarter of this year, Nokia's sales in Asia, Greater China, the Middle East and Africa came in at 4.9 billion euros ($6.6 billion)--down significantly over the year, but still making up around 52% of total sales.
Though U.S. market has been a tough one for Nokia, the company has been trying hard to gain a foothold in North America.In order to expand its presence, it recently bought Nortel's wireless division. Verizon Wireless and Sprint Nextel Corp., the first and third largest mobile phone companies in the U.S., both run their networks on CDMA technology and Nortel is one of their primary suppliers.
The company recently launched its new smartphone N97, a touchscreen phone, which is seen as its latest effort to enhance its position in smartphone market. The Nokia N97 was released in US flagship stores on 9 June 2009 and has a worldwide release date of "June".
Nokia is also tryng to further consolidate its hold over emerging-market. Last monh, it launched Nokia Life Tools service in India, which will deliver news, entertainment, educational and agriculture services straight to the handset.
The mobile phone giant has formed a long-term relationship chipmaker Intel Corp.(NASDAQ: ) to develop a new class of mobile computing devices that will use Intel chips. The world's largest chipmaker will work with Nokia to define a new mobile platform beyond today's smartphones, notebooks and netbooks, enabling the development of a variety of innovative hardware, software and mobile Internet services. The deal could help the handset maker recapture the bulk of the high-end smartphone market, as well as give it the flexibility to develop devices with new form factors and capabilities.
Shares of the company are up almost 70% from 52 week low of $8.47. Nokia rose 18 cents or 1.31% to $14.35 in afternoon trade on Thursday.
Disclosure: Author doesn't own any of the stocks mentioned here. 2009 results on Thursday, July 16, 2009 at approximately 1 pm Helsinki time (CET+1). The world’s biggest handset maker may report a 67
percent decline in net income, analyst’s estimate, as customers, concerned about uncertainty in job market, postponed phone upgrades. Nokia is seen selling 99.3 million phones in the quarter, a drop of 19% from a year ago.Espoo, Finland-based Nokia Oyj manufactures mobile devices, and provides Internet services and digital map information worldwide. The company’s Devices & Services segment designs, develops, and manages its mobile device portfolio, including the sourcing of components.
During the first quarter, earnings for the world's largest cell phone maker plummeted to €122 million -- down from €1.2 billion a year earlier. Revenue declined from €12.6 billion to €9.2 billion compared to a year ago. On a per-share basis, Nokia reported a €0.03 profit, down sharply from the €0.32 profit it posted a year ago and below financial analysts' estimates of a €0.06 profit.
Thanks to the reductions in inventory in market
s such as Asia Pacific and Latin America, Nokia's worldwide sales reached 97.4 million units in the first quarter of 2009. However, average selling price (ASP), which saw an 18% drop year-over-year.The company expects sales volumes in the second quarter to be flat or slightly up from what it saw in the first quarter.
Broadpoint AmTech analyst Mark McKechnie of Greenwich-based expects Nokia to report revenue of €10 billion (or $13.5 billion) and earnings per share of €0.13 (or $0.17). According to McKechnie, thoughASPs [i.e., average selling prices] and margins remain depressed, units are tracking better than expected. He says further that some "green shoots" could be spotted, especially after the retailer de-stocking of the first quarter.
According to technology research firm Gartner, Nokia continued to lead the mobile phone market in first quarter, though its share dropped to 36.2% from 39.1% in Q1 2008 due to severe recession. The company has enjoyed huge success in emerging markets, especially China and India.In the first quarter of this year, Nokia's sales in Asia, Greater China, the Middle East and Africa came in at 4.9 billion euros ($6.6 billion)--down significantly over the year, but still making up around 52% of total sales.
Though U.S. market has been a tough one for Nokia, the company has been trying hard to gain a foothold in North America.In order to expand its presence, it recently bought Nortel's wireless division. Verizon Wireless and Sprint Nextel Corp., the first and third largest mobile phone companies in the U.S., both run their networks on CDMA technology and Nortel is one of their primary suppliers.
The company recently launched its new smartphone N97, a touchscreen phone, which is seen as its latest effort to enhance its position in smartphone market. The Nokia N97 was released in US flagship stores on 9 June 2009 and has a worldwide release date of "June".
Nokia is also tryng to further consolidate its hold over emerging-market. Last monh, it launched Nokia Life Tools service in India, which will deliver news, entertainment, educational and agriculture services straight to the handset.
The mobile phone giant has formed a long-term relationship chipmaker Intel Corp.(NASDAQ: ) to develop a new class of mobile computing devices that will use Intel chips. The world's largest chipmaker will work with Nokia to define a new mobile platform beyond today's smartphones, notebooks and netbooks, enabling the development of a variety of innovative hardware, software and mobile Internet services. The deal could help the handset maker recapture the bulk of the high-end smartphone market, as well as give it the flexibility to develop devices with new form factors and capabilities.
Shares of the company are up almost 70% from 52 week low of $8.47. Nokia rose 18 cents or 1.31% to $14.35 in afternoon trade on Thursday.
Disclosure: Author doesn't own any of the stocks mentioned here. 2009 results on Thursday, July 16, 2009 at approximately 1 pm Helsinki time (CET+1). The world’s biggest handset maker may report a 67
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