Nokia releases Q3 2008 figures; sales and profits down

Nokia released its interim report today covering performance in Q3 of this year. Long story short, it wasn’t pretty. Nokia had predicted a slow third quarter and a slow third quarter it had indeed. Market share was down, shipments were down, sales were down and profit was down. Perhaps the most alarming statistic is Nokia’s market share – Nokia had been enjoying a steadily rising global share that finally reached an astounding 40% last quarter. Q3 brought the figure down 2% to 38% however, and it would have been worse if not for Nokia’s saving grace: emerging markets. As for Nokia’s presence here in the US, at least it didn’t lose any market share! Nokia held strong at 4.5%, down substantially from 2007 but identical to its share in Q2 2008. Some might consider that a small victory actually, considering the release of the iPhone 3G. Snippet from OPK:

As a result of our strong operational management and market position, Nokia was able to achieve solid margins and operating cash flow of 1.3 billion euros for the third quarter of 2008. With our scale, brand, improving product portfolio and low cost structure, we believe Nokia is well positioned for the current times.

Things are expected to turn around for Nokia in the coming months with the release of its first S60 touchscreen handset, the 5800 XpressMusic. Nokia also is expected to formally announce its first Nseries touchscreen device before the year is over. At the time this post was written, Nokia’s stock was up 2.58% to 15.50.

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Tags: 2008, Financials, Nokia, Q3

Zach Epstein