Nokia devices sale plunges 25% in Q3 2011

Nokia posted 13 percent decrease year-on-year in its net
sales in Q3 2011. Nokia net sales include income from Nokia devices, Navteq and
Nokia Siemens Networks. Nokia’s net sales declined to EUR 8,980 million in Q3
2011 from EUR 10,270 million in Q3 2011.

Nokia Siemens Networks contributed EUR 3,413 million in Q3
2011 with a 16 percent growth to Nokia’s net sales.

Nokia’s devices business saw its net sales plummeting by 25
percent at EUR 5,392 million in Q3 2011 from EUR 7,173 million in Q3 2010.

All business segments under Nokia devices posted negative
growth in Q3 2011.

Smart devices business of Nokia  reported
-39 percent growth at EUR 2,206 million in Q3 2011 in Q3 2011 from EUR 3,612
million. Nokia sold 16.8 million smart devices in Q3 2011 as compared with 27.1
million units in Q3 2010.

Mobile phone business grew -14 percent at EUR 2,903 million
in Q3 2011 from EUR 3,364 million. The company sold 89.9 million phones in Q3
2011, registering 8 percent growth over 83.3 million in Q3 2010.

From a product standpoint, our overall Mobile Phones
portfolio performed well. We shipped approximately 18 million dual SIM
devices in Q3, and in markets such as India where dual SIM is pervasive, we
gained market share. We also strengthened our Smart Devices line up in Q3, with
the launch of our first smartphones running Symbian Belle, which improves the
user experience and strengthens the competitiveness of our product portfolio,”
said Stephen Elop, CEO of Nokia.

I am encouraged by our progress around the first Nokia
experience with Windows Phone, and we look forward to bringing the experience
to consumers in select countries later this quarter. We then intend to
systematically increase the number of countries and launch partners during the
course of 2012,” Elop added.

Excluding the Middle East and Africa, Nokia devices business
showed negative growth in all regions.

In Europe, Nokia devices posted -39 percent growth at EUR
1,394 million in Q3 2011 from EUR 2,289 million in Q3 2010.

In the Middle East and Africa region, the net sales were EUR
957 million in Q3, registering 3 percent increase.

China, Nokia devices’ second largest region, contributed EUR
1,240 million in Q3 2011 from EUR 1,654 million in Q3 2010, clocking -25
percent growth.

The growth in Asia Pacific region was -20 percent at EUR
1,197 million in Q3 2011 from EUR 1,504 million in Q3 2010.

North America, the strong hold of Apple and Samsung, Nokia
devices posted -68 percent growth at EUR 73 million in Q3 2011 from EUR 226

Nokia devices’ net sales in Latin America were EUR 531
million in Q3 2011, showing -7 percent growth.

On a year-on-year basis, the decline in its total Devices
& Services volumes in the third quarter 2011 was driven by lower Smart
Devices volumes which more than offset the increase in our Mobile Phones

The sequential increase in its total Devices & Services
volumes in the third quarter 2011 was driven by higher Mobile Phones volumes.
It also reflected higher sales in the third quarter 2011 following actions
taken during the second quarter 2011 to create a healthier sales environment by
facilitating the reduction of the inventory levels held by distributors and

On a year-on-year basis, the overall decrease in its Devices
& Services ASP in the third quarter 2011 was driven primarily by the lower
ASP in Mobile Phones and, to a lesser extent, Smart Devices, a higher
proportion of Mobile Phones sales and the appreciation of the Euro against
certain currencies, partially offset by a positive impact from foreign exchange
currency hedging and higher IPR royalty income.

On a sequential basis, the overall decline in our Devices
& Services ASP in the third quarter 2011 was driven by a product mix shift
towards lower priced devices, lower IPR royalty income and the impact of a full
quarter of our tactical pricing actions across the portfolio initiated in the
second quarter 2011.

Nokia made available for download Symbian Anna, a major
software update which enhances the user experience of the first generation of
Symbian^3 devices – Nokia N8, Nokia C7, Nokia C6-01 and Nokia E7 – bringing
owners of these devices a new user interface, virtual QWERTY keypad in portrait
mode, split-screen messaging, enhanced Nokia Maps, better web browsing and
stronger security.

By Baburajan K
[email protected]