With 4Q07 strong financial results, Nokia clearly demonstrated its domination in the handset market, when rivals are struggling to maintain their market position and profitability. 4Q07 net profit increased by 44% to €1.8bn on revenues of €15.7bn, up 34%, both well above analysts consensus. The operating margin gained 1.3 points to 15.9%. Nokia shipped 133.5m handsets in the quarter, up 27%, and held a healthy 40% market share. In the mobile phone division, Nokia reported healthy margin of 25%, more or less doubling that of its main competitors. For 2007, numbers are also exceptional. Net income rose 67% to €7.2bn while revenues jumped 24% to €51bn, of which almost 50% in mobile phones and €13.4bn in NSN. Nokia shipped some 437m handsets in the year for a global market share of just below 39%. Nokia CEO said; “"was a year of important strategic initiatives by Nokia, with Nokia Siemens Networks starting operations, our internet services effort taking shape around Ovi, and the announcement of the pending acquisition of Navteq. We are continuing to improve our leading device portfolio as well as execution at Nokia Siemens Networks. With this we believe Nokia is well positioned for growth in 2008."”
In addition, Nokia estimates that the handset industry will see 10% annual growth this year.
Buoyed by the good news, Nokia 'stock climbed 8% to $35.