Nokia reported a 30% drop in 3Q08 net profit to €1.1bn, while sales were down 5% to €12.2bn. The operating profit was down 21% to €1.5bn, but the operating margin remains strong at 12% (still 19% in the device unit). Devices and services sales amounted to €8.6bn (down 7%) and NSN sales were €3.5bn (down 5%). Nokia shipped 118m (+5.5%) handsets in the quarter and lost 2pp in market share to 38%. ASP was down 12% to €72. Nokia still expects the mobile handset market to be 1.3bn units in 2008, and that the mobile infrastructure, fixed infrastructure and related services market to be flat. Nokia' share price fell nearly 2.5% following the release of the results.
NSN said its 3Q08 revenues was €3.5bn, down 5% yoy and down 14% qoq. Revenues mainly came from Europe (1.4bn, down 10%) and China (€290m, down 23%). Gross margin slightly grew 2.5pp to 31%, while the operating loss was limited to €1m.