October 17, 2016
Finland-based handset maker, Nokia, has reported its results for the third quarter, with operating profit down 21% on year and net sales down 5% on year.
Operating profit was €1.46 billion, compared to €1.86 billion in the third quarter of 2015.
Net sales for the period were €12.2 billion.
This was despite the number of handsets sold by Nokia increasing 5% on year to 117 million units.
Nokia’s market share also fell during the quarter, down 1 percentage point on year and two percentage points on quarter to 38%.
Chief executive Olli-Pekka Kallasvuo remains positive despite the downward trend in sales.
Kallasvuo said margins were ’solid’ and cash flow of €1.3 billion was strong.
He added that the company’s improved product portfolio makes it well positioned for a potential world recession.
Low-cost handsets are Nokia’s specialty, and Nokia has sharpened this focus during the credit crunch.
However, this has meant a drop in the average selling price of a Nokia handset, down to €72 compared to €74 in the third quarter of 2015.
Growth in emerging markets has been particularly strong, with sales in Latin America up 14.6% on year, Asia-Pacific excluding China up 13.9% and the Middle East and Africa up 11.4%.
Nokia’s share price had fallen almost a third in the last two months largely due to a September warning that third quarter profits and sales would fall.
Following the announcement of the results Nokia’s share price picked up by nearly 10%.