STOCKHOLM–Nokia Corp., the world's top cellphone maker, said yesterday second-quarter earnings fell 66 per cent as the global recession sapped demand, and its stock sagged after it scrapped its target to gain market share this year.
Net profit was 380 million euros ($601 million Canadian), down from 1.1 billion euros in the same period a year earlier. Sales tumbled 25 per cent to 9.91 billion euros.
Analysts polled by SME Direkt had forecast a profit of 327 million euros and sales of 10.1 billion euros. Nokia shares fell nearly 15 per cent to 9.47 euros in Helsinki, and in New York closed down $2.20 (U.S.), or 14.16 per cent, at $13.46
Nokia shipped 103 million mobile devices in the quarter, down 15 per cent from a year earlier, but better than some analysts had expected. The average selling price of a Nokia handset hit 62 euros from 74 euros.
"It almost feels like Nokia has been doing a great job at keeping shipments alive, but has been forced to cut prices to keep volumes up," said Neil Mawston, a telecom analyst at Strategy Analytics.
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