Bangkok--Apr 25--Ogilvy Public Relations Worldwide
Nokia posts strong performance result for the first quarter of 2005 with Bt381 billion* (EUR7.4 billion) net sales, representing 17% increase, and Bt56.68 billion operating profit (EUR1.1 billion), 10% increase from the same period last year. The positive growth is credited to significant expansion in all business grops, especiall Multimedia products which saw 52% sales increase to Bt56.65 billion (EUR1.1 billion).
Mr. Jorma Ollila, Chairman and CEO of Nokia, said, “I was extremely satisfied with Nokia's overall first-quarter performance, which brought double-digit growth at the top line, including year-on-year sales growth for each of our four business groups. Nokia's operating margin of 15.1% reflects an excellent all-round performance from all areas of our business and gives us a solid platform to build on as the year unfolds.”
According to Nokia estimates, year-on-year volume growth for the mobile device market in the first quarter came in ahead of expectations at 20%, with Nokia growing at about the same pace as the market. This marked a strong start for the year and prompted an upward revision of our 2005 annual market volume estimate to about 740 million units.
Mobile Device business
For the first-quarter 2005, the total mobile device sales volume achieved by the Mobile Phones, Multimedia and Enterprise Solutions business groups reached 53.8 million units, representing a year-on-year rise of 20%. Nokia's estimated market share for the first quarter was 32%, flat year on year.
Nokia Mobile Phones: First-quarter 2005 net sales grew 11% year on year to Bt231.75 billion (EUR 4.5 billion), driven by good demand and Nokia’s great product portfolio. Increasing popularity of smartphone also contributed to such growth. In smartphones, the total industry volume for the first quarter reached an estimated 10 million units, while Nokia's own smartphone volumes grew to 5.4 million units, compared with 1.8 million units in the first quarter 2004. During the quarter, Nokia strengthened its mid-range portfolio of feature-rich, voice-centric handsets with the launch of three new products: the Nokia 6230i phone with a megapixel camera, the Nokia 6021, an affordable business-oriented phone, and the Nokia 6030 with easy messaging functionality. In addition,Nokia is providing its GSM operator customers with greater possibilities for mobile phone customization.
Multimedia: Nokia further expanded is 3G WCDMA product range with the launch and shipping of the Nokia 6680 megapixel smartphone with two integrated cameras, and the Nokia 6680 is optimized for visual sharing. In music, Nokia made important collaboration with leading companies like Microsoft in offering digital media format support for Nokia handsets. Nokia also continued to work together with broadcasters and mobile operators to enable mobile TV services based on DVB-H and pilot services have already been launched in some European countries.
Enterprise Solutions: the Nokia 9500 Communicator and Nokia 9300 enterprise smartphone began shipping in volumes. In only a few months, these device sales have already exceeded more than 50% of the lifetime volume of the two preceding Communicator models.
In Nokia's own mobile device business, year-on-year volume growth during the quarter was fastest in China, which became our number one single market, followed by Asia Pacific and Europe/Middle East/Africa. In Asia, particularly China, we have focused on expanding our distribution and developing a competitive and quality product portfolio.
* Exchange rate : EUR1 = Bt51.5
Network and mobile infrastructure
In mobile infrastructure, we also had a very good quarter, with higher-than-expected profitability boosted by an excellent performance in March. Networks profitability was positively affected by a product mix favoring high-margined products.
First-quarter 2005 net sales for Nokia mobile network and infrastructure increased 6% year on year to Bt72.1 billion (EUR 1.4 billion). Sales were supported by capacity investments in more developed markets, particularly during March. Nokia also won several WCDMA 3G contracts in various countries worldwide.
Technology
During the first quarter, Nokia introduced the Series 60 Platform 3rd Edition, supported by a complete set of developer tools and specifically targeted to support the mid-range expansion of the leading smartphone platform.
2005 market outlook
Based on volume developments during the first quarter 2005, Nokia now expects the overall mobile device market for 2005 to reach about 740 million units, compared with our previous estimate of approximately 10% annual growth, from an estimated 643 million units in 2004. The overall market is also expected to grow in value, but to a lesser extent. Volume growth is expected to continue to be driven by replacement and upgrade sales in more developed markets, with the availability of new features, services and cameras, and by new subscriber growth in developing mobile markets.
About Nokia
A market leader in the cellular industry in Asia Pacific, Nokia provides innovative, industry leading and market-relevant technology and products to around 20 diverse markets in the region.
Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations.
You may visit the Nokia Asia-Pacific website at http://www.nokia-asia.com or the Nokia Group website at http://www.nokia.com
For more information please contact:
Una Tan / Jiraporn Boonnark
Nokia (Thailand) Ltd. Tel. 0 2673 8888
Waralee Bunnag/ Kasama Bhumaree
Ogilvy Public Relations Worldwide Ltd.
Tel. 0 2205 6627, 0 2205 6625 End.