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Nokia Q1 2010: Profits up 60% compared to Q1 2009, down 44% compared to Q4 2009

Categories: Nokia
By: , IntoMobile
Thursday, April 22nd, 2010 at 3:42 AM

Nokia’s Q1 2010 financial results just came out. Let’s run through them together shall we:

  • The company had 9.5 billion EUR of revenue, which is up 3% compared to last year, but down 21% compared to Q4 2009
  • The Devices and Services units had 6.7 billion EUR of revenue, up 8% year on year, down 19% compared to last quarter
  • 107.8 million mobile phones sold, up 16% year on year, down 15% compared to last quarter
  • Of those mobile phones, 21.5 million were smartphones; that’s up 57% compared to last year, and up 3% compared to last quarter
  • Average selling price of all the mobile phones sold: 62 EUR, down from 64 EUR in Q4 2009
  • This is the first quarter I’m aware of that Nokia shows ASP for both voice only devices, and smartphones; note that the average S30/S40 device sold for just 39 EUR this quarter, and the average smartphone sold for 155 EUR:
  • Margins are continuing to slide for the Devices and Services units, down to 12.1% this quarter; up from 10.4% in Q1 2009, down from 15.4% in Q4 2009
  • Total cash and liquid assets on hand: 9.7 billion EUR

Other fun stats:

  • 10 million people have downloaded the new version of Ovi Maps that offers free navigation
  • Nokia expects device unit volumes for 2010 to be up 10% compared to 2009
  • Nokia has reduced their target margins for the Devices and Services units; was previously between 12% to 14%, is now 11% to 13%
  • Here is a chart showing how Device and Service sales have changed, split by region. Note that year on year Europe is practically flat, Asia Pacific is down, and America is wayyy down:
  • Nokia’s market share is down to 33%, up from 32% in Q1 2009, by down from 35% in Q4 2009; note these are figures based on the new method of calculating industry volumes
  • Nokia estimates that 52.6 million smartphones shipped in Q1 2010, and using their numbers they now have a market share of 41%, up from 38% a year prior, and up from 40% last quarter
  • Here is a chart showing device shipments broken down by territory, compared to both last year, and last quarter:
  • Quote lifted straight from the press release: “Nokia is planning to deliver a family of smartphones based on the Symbian^3 software platform that is targeted to offer a clearly improved user experience, a high standard of quality, and competitive value to consumers. We plan to launch the first smartphone based on Symbian^3 during the second quarter 2010, with shipments expected during the third quarter 2010.”
  • The Ovi Store is filled with over 9,500 items, and is experiencing over 1.5 million downloads a day, with the average users downloading 8 items per month Update: During the call the number of downloads per day was increased to 1.7 million per day
  • There are now over 3 million Nokia Messaging accounts
  • There are more than 1 million people using Nokia Life Tools

And that’s that. The conference call is due to start in about 90 minutes, and I’ll listen to it, but will not be live blogging it. Any important data, usually shipment numbers for a particular model, will be added to the bottom of this post if they’re disclosed.

The huge drops in both sales and unit shipments between Q4 09 and Q1 10 are expected, seasonality and all that jazz, but for some strange reason Apple sold more devices in Q1 2010 than they did in Q4 2009. Using Nokia’s number of 52.6 million smartphones shipped this quarter, that would give Apple and their 8.75 million iPhones sold a market share of 16.6%.

Also note that the average price of a smartphone sold by Nokia in Q1 2009 was 190 EUR, and today it’s 155 EUR. That’s a drop of 35 EUR! Unit sales are down 30% quarter on quarter in Europe, meaning after Christmas almost no one purchased another device. Same can’t be said in China, where unit sales increased by 20%. Thank the Chinese New Year for that. In fact, China is the only territory where unit figures increased compared to Q4 2009.

Update: Reuters is saying Nokia is cutting prices by up to 10% to increase sales, and that the next version of Symbian has been delayed.

Update: Nokia said that in Q1 2010 they shipped 18 million devices with either a QWERTY keyboard or touch screen. That’s up 6% quarter on quarter, and 300% up year on year.

About The Author

Stefan Constantinescu

Stefan Constantinescu (@WhatTheBit on Twitter) has loved technology since as far back as he can remember. It started with computers, but in the past few years his passion has turned to mobile devices. As a mobile phone enthusiast who lives and breathes devices that connect to the internet, he knows he is not alone with this radical fascination of all things wireless. He is strongly opinionated and enjoys a good debate so leave comments in his posts and he’ll get back to you! Stefan began blogging as a hobby in the fall of 2006 and joined IntoMobile in the summer of 2007. Later he got a job at Nokia in March 2008, but as of June 2009 he has rejoined the IntoMobile team. He is currently based out of Helsinki, Finland.