Nokia Q3 Earnings Drop 28 Percent, Revenue Drops 5 Percent

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Nokia reported third-quarter earnings down 28 percent on a year earlier, and revenue down 5 percent. Its share of the mobile phone market slipped too.

Revenue for the quarter ended September 30 totalled €12.24 billion (US$17.68 billion), a figure which will disappoint analysts who had expected something nearer $18.59 billion.

The company reported net profit of €1.09 billion, down from €1.56 billion a year earlier.

During the quarter Nokia closed its acquisition of Navteq, a distributor of digital maps for GPS (Global Positioning System) terminals, bringing it additional sales of €156 million but an operating loss of €80 million.

Nokia sold 117.8 million mobile devices in the third quarter, giving it 38 percent of a market it estimates at 310 million devices. That's down from a share of 39 percent a year earlier, and 40 percent in the second quarter, it said.

One factor affecting Nokia's results is a move to cheaper handsets: handset sales for the quarter rose 8 percent by volume compared to a year earlier, but dropped 7 percent by value.

Despite the economic downturn, Nokia sees itself as "well positioned for the current times," it said.

The company still expects the mobile phone market to grow -- to 1.26 billion units this year from 1.14 billion in 2007, and it sees its share of that market remaining steady or rising in the fourth quarter.

At its infrastructure joint venture, Nokia Siemens Networks, the company expects market share and sales for the full year to remain broadly unchanged from 2007, an outlook Nokia has maintained since reporting its second-quarter results in July.

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