Nokia Q3 2010 results - beats expectations, smartphones sales at 26.5m

Nokia has released their Q3 2010 results, reporting an operating profit of €529 million, with net sales of €10.3 billion. Nokia's device and service division's profits were €807 million, up 3% year on year. Margins in devices and services were 10.5% (down 0.9% YoY and up 0.9% QoQ). The figures beat market expectations. Converged devices sales (smartphones) were significantly up, at 26.5 million, compared with 16.4 million units in Q3 2009 (up 61% YoY) and compared with 24 million units in Q2 2010 (up 10%, QoQ).  Worldwide smartphone market share was 38%, down 3% sequentially but up 2% year on year. 

Nokia, with its Q3 results, has beaten market expectations. For example analysts predicted a figure of €0.10 EPS, against a reported figure of €0.14 EPS. Margins in the crucial Devices and Services division were also ahead of expectations and consequently Nokia's share price is trading 7% up.

Stephen Elop, Nokia CEO, said:

"In the five weeks since joining Nokia, I have found a company with many great strengths and a history of achievement that is second to none in the industry. And yet our company faces a remarkably disruptive time in the industry, with recent results demonstrating that we must reassess our role in and our approach to this industry.

Some of our most recent product launches illustrate that we have the talent, the capacity to innovate, and the resources necessary to lead through this period of disruption. We will make both the strategic and operational improvements necessary to ensure that we continue to delight our customers and deliver superior financial results to our shareholders."

Looking forward Nokia now expects its market share for 2010 to be slightly down on 2009, but still a healthy 'high thirties' percent. Previously Nokia indicated that its market share would be flat. Nokia is expecting its Devices and Services margin to be between 10% and 12% in Q4 with sales between €8.2 billion and €8.7 billion, somewhat ahead of previous predictions.

Nokia's Q3 results come in advance of the expected positive impact of its new line of Symbian^3 handsets. The strength of sales in converged devices was primarily based on lower cost devices such as the Nokia 5230 and its variants, with sales of Eseries device remaining an important contributory factor.
  

Points of interest

 Nokia's smartphone sales  

Conference call notes

 

Rafe Blandford, All About Symbian, 21 October 2010

See also

Nokia Results

Earlier results: Q2 2010Q1 2010Q4 2009Q3 2009Q2 2009Q1 2009Q4 2008Q3 2008, and Q2 2008

Published by Rafe Blandford at 11:33 UTC, October 21st

Section: News
Categories: Industry
Platforms: General, S60 3rd Edition, S60 5th Edition, General, Symbian^3