Nokia reported 1Q08 revenues of €12.7bn in the quarter, up 28%, and a net profit of €1.2bn, up 25%, but below expectations by €150m. The operating margin increased over 1p to 14.7%, but down sequentially 1.2p. With such numbers, most companies would be smiling at the financial meetings. But the performance was overshadowed by the change in the handset market outlook. Nokia said the market would decline in value from last year, but will increase 10% in volume, giving reasons for the change in weakened dollar, general economic slowdown, and lower ASP.
Nokia shipped 115.5m units in the quarter (+27%) and gained a 39% market share (+3pp yoy and -1pp sequentially). Sales in the Devices and Services unit amounted to €9.2bn, up 13%, and operating income jumped 50% to €1.8bn. Strong operating margin and profitability in the unit with over 21% (+5 p) margin.
NSN reported a 1Q08 operating loss of €74m, on sales of €3.4bn (down sequentially 26%).