Nokia reports jump in Q3 profits

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Nokia today released its third quarter financials, reporting healthy net sales of €12.9 billion (£9 billion) and net profit up 85 per cent to just over €1.5 billion (£1 billion).

The buoyant results and strong performance in Europe, the Middle East and Africa (EMEA), Asia Pacific and China have led the company to boast an estimated device market share of 39 per cent for the period, up from 36 per cent during the same quarter a year previously.

Net sales for each of its mobile phones, multimedia and enterprise solutions arms were up by three per cent, 23 per cent and 105 per cent respectively, with the number of mobile devices shipped by these three business divisions reached 111.7 million units, showing 26 per cent year-on-year growth that outpaced overall industry volume growth of 17 per cent year on year.

"Nokia strengthened its leading position in the device industry in the third quarter. In a strong market, we simultaneously gained market share and increased our operating margin," said Olli-Pekka Kallasvuo, Nokia's chief executive.

Nokia is now hoping for an equally strong fourth quarter and full-year results, with mobile device shipments expected to be up again in the final months of the year.

"Nokia expects that the mobile device market volume will be approximately 1.1 billion units in 2007, up from the approximately 978 million units Nokia estimated for 2006," it said before alluding to the fact that average selling prices will fall further. "Nokia continues to expect the device industry to experience value growth in 2007, but expects some decline in industry ASPs, primarily reflecting the increasing impact of the emerging markets and competitive factors in general," it added.

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