Nokia Lost Cell Phone And Device Market Share

While Nokia's CEO Olli-Pekka Kallasvuo praised the company's solid performance and said that there were signs that the market is bottoming, the investors chose to focus on the negative and sent Nokia's share price nearly 10 percent down in the European trading. This is despite the fact that the company narrowly beat analysts.

In its second quarter release Nokia reports that of the total industry mobile device volumes, converged mobile device industry volumes in the second quarter 2009 increased to 41.0 million units, based on Nokia's preliminary estimate, compared with an estimated 37.1 million units in the second quarter 2008, and 36.0 million units in the first quarter 2009. "Our own converged mobile device volumes were 16.9 million units in the second quarter 2009, compared with 15.3 million units in the second quarter 2008 and 13.7 million units in the first quarter 2009. Nokia's share of the converged device market was an estimated 41% in the second quarter 2009, unchanged from 41% in the second quarter 2008 and up from 39% in the first quarter 2009. We shipped 4.6 million Nokia Nseries and 4.7 million Nokia Eseries devices during the second quarter 2009, up from the combined 8.2 million Nseries and Eseries devices we shipped in the first quarter 2009."

Nokia's second quarter earnings were 9.9 billion Euros.

The company also said that that operating margins in its main devices and services division were likely to miss an earlier target to be in the teens in the second half of the year. In early afternoon trading in Helsinki shares in Nokia were 9.7 per cent lower at €10.80.

Nokia's 2009 second quarter earnings report came after its rival Ericsson reported reported a €213m loss compared to a previous year profit and recording a sharp fall in sales for the three months to the end of June.

By Armen Hareyan
Nokia press release and FT reports are used in this material.