difenbaker
10-20-2007, 08:58 AM
Even As Mobile Phone Prices Plummet, Market Leader Nokia Dialed Into Growth
BRIAN DEAGON,Investor's Business Daily
Oct 18, 2007 11:50 EDT
Nokia, despite a drop in the average price of its cell phones, handily beat earnings estimates in third-quarter results posted Thursday.
The Finland-based No. 1 cell phone maker also said its global market share rose to 39% from 38% in the second quarter and 36% a year ago.
Its U.S. shares rose 3% to 37.64, near an eight-year closing high of 37.96 set on Oct. 1. And Nokia NOK said its operating profit margin for its mobile devices jumped to 22.6% from 13% in the year-ago quarter.
"What is very impressive is that despite a mix of products favoring ultra-low-cost devices and a lower average selling price, they continue to show growing margins," said Carolina Milanesi, analyst at research firm Gartner. "This is thanks to the great deal of effort in containing costs and the ability they have to leverage economies of scale."
The operating margin is profit from operations before interest, taxes and other items, as a percentage of sales. Its overall operating margin rose to 14.4% from 10.9%.
As a result, the company said its profit nearly doubled to 40 euros from 21 euros a year ago, shattering analysts' expectations of 31 euros. The 40 euros equaled 57 cents at Thursday's conversion rate -- or 55 cents at the average conversion rate for the quarter.
"The quality and depth of our device portfolio continues to give us a good competitive edge that looks promising for next year," Nokia CEO Olli-Pekka Kallasvuo said in a conference call with analysts.
Sales rose 28% to 12.9 billion euros, or $18.3 billion, slightly below views of 13.1 billion euros.
The average selling price of Nokia phones fell to 82 euros, or $116, in the quarter from 93 euros, or $132, in the second quarter. The drop was largely due to large shipments of phones to China, where handsets on average sell for less than 30 euros, or $43.
Nokia shipped 112 million devices in the quarter, up 11% from the prior quarter and 26% from a year ago. That also beat analyst views of 110 million units.
http://www.cellular-news.com/story/26829.php
cheers!
BRIAN DEAGON,Investor's Business Daily
Oct 18, 2007 11:50 EDT
Nokia, despite a drop in the average price of its cell phones, handily beat earnings estimates in third-quarter results posted Thursday.
The Finland-based No. 1 cell phone maker also said its global market share rose to 39% from 38% in the second quarter and 36% a year ago.
Its U.S. shares rose 3% to 37.64, near an eight-year closing high of 37.96 set on Oct. 1. And Nokia NOK said its operating profit margin for its mobile devices jumped to 22.6% from 13% in the year-ago quarter.
"What is very impressive is that despite a mix of products favoring ultra-low-cost devices and a lower average selling price, they continue to show growing margins," said Carolina Milanesi, analyst at research firm Gartner. "This is thanks to the great deal of effort in containing costs and the ability they have to leverage economies of scale."
The operating margin is profit from operations before interest, taxes and other items, as a percentage of sales. Its overall operating margin rose to 14.4% from 10.9%.
As a result, the company said its profit nearly doubled to 40 euros from 21 euros a year ago, shattering analysts' expectations of 31 euros. The 40 euros equaled 57 cents at Thursday's conversion rate -- or 55 cents at the average conversion rate for the quarter.
"The quality and depth of our device portfolio continues to give us a good competitive edge that looks promising for next year," Nokia CEO Olli-Pekka Kallasvuo said in a conference call with analysts.
Sales rose 28% to 12.9 billion euros, or $18.3 billion, slightly below views of 13.1 billion euros.
The average selling price of Nokia phones fell to 82 euros, or $116, in the quarter from 93 euros, or $132, in the second quarter. The drop was largely due to large shipments of phones to China, where handsets on average sell for less than 30 euros, or $43.
Nokia shipped 112 million devices in the quarter, up 11% from the prior quarter and 26% from a year ago. That also beat analyst views of 110 million units.
http://www.cellular-news.com/story/26829.php
cheers!