Home > Nokia > Nokia Q2 Results – Smarphone market share up to 41%

Nokia Q2 Results – Smarphone market share up to 41%

Nokia has just released their Q2 results. Click here for the press release, as well as all the data.

It’s important to note that with no new flagship until possibly the end of Q3 (and Q4 in some areas), and the continued onslaught of Android and iPhone 4, things might be expected to become worse before it finally becomes better as Nokia announces more high end handsets (*cough*E7*cough*N9*Cough*). Nokia held ground well considering it’s supposedly dead.

Some of Nokia’s Q2 highlights below.

  • 111M handsets sold this quarter, up 8% from last year, 3% sequentially
  • Nokia converged mobile device (smartphone and mobile computer) volumes of 24.0 million units, up 42% year-on-year and 12% sequentially.
  • Smartphone Market share up to 41% (40% Q1, 39% Q4 09, 38% Q3 09)
  • Nokia net sales of EUR 10.0 billion, up 1% year-on-year and 5% sequentially (down 4% and up 2% at constant currency).
  • Devices & Services net sales of EUR 6.8 billion, up 3% year-on-year and 2% sequentially (down 2% and 1% at constant currency).
  • Services net sales of EUR 158 million, up 7% sequentially; billings of EUR 295 million, up 29% sequentially.
  • NAVTEQ non-IFRS net sales of EUR 253 million, up 71% year-on-year and 34% sequentially (up 69% and 30% at constant currency).
  • Nokia mobile device ASP (including services revenue) of EUR 61, down from EUR 62 in Q1 2010.
  • Devices & Services gross margin of 30.2%, down from 34.0% in Q2 2009 and 32.4% in Q1 2010.
  • Devices & Services non-IFRS operating margin of 9.5%, down from 12.2% in Q2 2009 and 12.1% in Q1 2010.
  • Nokia Siemens Networks net sales of EUR 3.0 billion, down 5% year-on-year and up 12% sequentially (down 11% and up 10% at constant currency).
  • Nokia Siemens Networks non-IFRS operating margin of 1.7%, up from 0.1% in Q2 2009 and 0.6% in Q1 2010.
  • Nokia operating cash flow of EUR 944 million.
  • Total cash and other liquid assets of EUR 9.5 billion at the end of Q2 2010.
  • Nokia taxes were unfavorably impacted by Nokia Siemens Networks taxes as no tax benefits are recognized for certain Nokia Siemens Networks deferred tax items. If Nokia’s estimated long-term tax rate of 26% had been applied, non-IFRS Nokia EPS would have been approximately half a Euro cent higher.

Interestingly, smartphone market share is somehow up to 41% from 40% last quarter. Unfortunately, global market share is down to 34% (from 35% as the market grew 10% whilst Nokia had pretty much flat growth).


(The following discussion is of Nokia’s reported results. Comparisons are given to the January-June 2009 results, unless otherwise indicated.)

  • Nokia’s net sales increased 2% to EUR 19 525 million (EUR 19 186 million).
  • Net sales of Devices & Services increased 6% to EUR 13 462 million (EUR 12 759 million).
  • Net sales of NAVTEQ were EUR 441 million (EUR 279 million).
  • Net sales of Nokia Siemens Networks decreased 7% to EUR 5 757 million (EUR 6 189 million) [Not including the 7billion USD deal btw)
  • Operating profit increased 62% to EUR 783 million (EUR 482 million), representing an operating margin of 4.0% (2.5%).
  • Operating profit in Devices & Services increased 13% to EUR 1 474 million (EUR 1 310 million), representing an operating margin of 10.9% (10.3%).
  • Operating loss in NAVTEQ was EUR 158 million (loss of EUR 220 million), representing an operating margin of -35.8% (-78.9%). Operating loss in Nokia Siemens Networks was EUR 405 million (loss of EUR 549 million), representing an operating margin of -7.0% (-8.9%). Corporate Common Functions reported expense totaled EUR 53 million (EUR 59 million).

Other things:

  • >1.7m daily downloads from Ovi Store (pretty good considering the current state of it, what more when Qt starts to ramp quality up?)
  • 13,000 items (including apps). Hmm.
  • OPK on the N8,

“In smartphones, we continue to renew our portfolio. We believe that the Nokia N8, the first of our Symbian^3 devices, will have a user experience superior to that of any smartphone Nokia has created. The Nokia N8 will be followed soon thereafter by further Symbian^3 smartphones that we are confident will give the platform broader appeal and reach, and kick-start Nokia’s fightback at the higher end of the market”

N8 will be followed SOON thereafter by more S^3 devices.

Categories: Nokia Tags: ,
  1. Awss
    July 22, 2010 at 12:19 pm

    ahh, now I can sleep well 🙂

    Nokia has SISU, they been a bit slow, but when they do come out with new products, it’s usually good stuff, hoping for Meego to be a success 😉

  2. Yougo
    July 22, 2010 at 12:29 pm

    Can we see the nokia performance in each country?

  3. Niraj
    July 22, 2010 at 12:30 pm

    231 M euro profit while they sold 111M phones. That means profit of only 2 euro per handset.??

    • JFH
      July 22, 2010 at 1:37 pm

      Good point, and yes. Which also means, if they are able to raise prices by 2 to 4 Euro based on new models, profit will rise quickly.

  4. Jakob
    July 22, 2010 at 12:42 pm


  5. Douglas
    July 22, 2010 at 1:41 pm

    It’s funny to watch how some blogs spin this as horrible news (engadgetmobile.com) saying how their profit took a dive, and yet others tell of good times. Nokia can be happy that their market share is up, but is that really something to be happy about when their profits are shrinking still?

  6. JFH
    July 22, 2010 at 2:24 pm

    Ok, let me just put in some perspective here. I know very well that Nokia realised, even before the N97, they were caught off guard by the emergence of touchscreen phones as a status symbol. They were caught off guard when they were building services. At the worst possible time for them.

    Since then they have managed to make Ovi maps in a gem of an asset, the Ovi store the 3rd most popular online store, and they expect to have 300 Million ovi services users.

    They refocused on hardware & OS, and in my mind built a stellar device with the N900. Now that S^3 is here, S^4 is coming, MeeGo is coming, NFC, Pentaband, all that stuff is coming, with Qt, the way is up from the moment they announce all of this at Nokia World. I expect them to make a splash.

    They have basically stayed profitable in the WORST time they have ever had, and they have made the right choices, technologically, strategically, and morally. They have gone through a storm, have continued to focus on long term investments instead of panicking, picking up Android and running with it.

    They have 10 Billion is cash. The majority of patents in LTE. They build the largest LTE roll out to date at 7 Billion dollars. None of their new batch of devices is out yet, not even the N8. With an N8, N9, E7, X7, C7 coming out, their entire all star line up is absent, while the rest is digging their grave with the CPU MHZ wars.

    Nokia is profitable, as opposed to what we see from Sammy of SE usually, because they have lower costs. Lower production costs, higher volumes, etc. They will not and should not give this away. What they should do is retain the cost advantage without skimping on performance.

    THAT is the reason they wont pick up android. It turns them into Asus, or Dell, box pushers that compete on price on similar hardware & software: STUPID. And it is the smart way to go. I completely believe S^3/S^4 will give us equally snappy performance as competitors, but with lesser specs. Those specs are irrelevant, its experience that counts. And Nokia is betting it can deliver the same experience through cheaper chips, because Symbian is simply better at it.

    For going all out, for getting perception turn positive again, for getting the spotlight back on Espoo, what better way to do this than lead the way in moving from smartphones to mobile computers. Did you see what just happened with FCam. Think you can do that on iOS?

    So we have Nokia, Intel, & Linux foundation working on MeeGo. We already have seen a preview that looks already as shiny or better than the stuff that is out there now. BUT: Its a full real OS. Not iOS, not “look im a java VM” Android, but a real operating system. One that could run open office, or gimp, or what have you. The N9 will be a leap forward. Its the reason no one has seen it yet.

    I know it has been said before, but wait and see. 🙂

    • July 22, 2010 at 2:51 pm

      Fantastic comment, had to include it in a rant I was preparing 😀

    • Niraj
      July 22, 2010 at 3:10 pm
    • July 22, 2010 at 5:27 pm

      JFH: “They have gone through a storm, have continued to focus on long term investments instead of panicking, picking up Android and running with it.”

      I still think they could do very well short-term if they made just ONE Android device that was future proof as Google updates the main Android build.

      They should absolutely NOT just run with Android long term, but one device to reach the masses, when all Nokia would really need to do is throw an easy to use UI on the foundation and pair it with one of their current devices and call it day.

      Instead of being another Android “box pusher” Nokia could do things completely different, make their Android device stand out entirely different from all the others – And sell it for dirt cheap, since I believe they can make the cheapest handsets in terms of cost compared to other companies, no?

      Just food for thought…it never hurts to discuss ALL possibilities. 🙂

      • Andre
        July 22, 2010 at 6:13 pm

        Android in the short term would be a significant undertaking. VERY significant.
        It takes upwards of a year to get a device from concept to realization and even more effort would have to go into programming the android interface for nokia hardware.
        There are a number of other issues but lets just say it absolutely not worth it.

  7. Jakob
    July 22, 2010 at 3:15 pm

    Straight from the horses mouth. I liked this interview…

  8. John Wiegand-forson
    July 22, 2010 at 9:01 pm

    Pretty good they managed to grow market share in smartphones considering there was nothing exciting on that front. I honestly cannot wait for Nokia World in London later in september some really exciting phones will be coming out there and I expect Nokia’s market share to grow in Q3 and Q4

  9. July 23, 2010 at 4:34 am

    You forgot to mention on the net profit: €221 million vs €380 million in the same period last year.

    That’s a 40% drop in profits!

    Despite all that ‘rising’ numbers above, clearly, Nokia’s not making money like before.

    • m3
      October 6, 2010 at 12:59 pm

      H1/2010 profits are higher than H1/2009, Nokia will easily also make a better H2/2010 than it did in 2009, so full year profits will also be better than last year. Q3/2010 results will probably be similar to Q2/2010 and Q4/2010 will be radically better. Nokia is not making money as it did in 2007-H1/2008 but it still makes healthy profits and will improve considerably from last year.

  1. July 22, 2010 at 2:50 pm

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