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Profit fell by 96.4%,bad Performance for Nokia 2009 Q1

Profit fell by 96.4%,bad Performance for Nokia 2009 Q1

April 17, Nokia announced the first quarter's financial statements, even though its net sales are still as high as 9.3 billion U.S. dollars, but received the impact of the global economic recession, sales fell compared with the previous quarter of 26.8 % year-on-year decline in the first quarter of last year's 26.7 percent. The decrease in operating profit was even more shocking, compared to the fourth quarter of 2008 decreased 88.8%, year-on-year last year, a decrease of 96.4%.

The first quarter of 2009, Nokia mobile terminal sales to 93.2 million, representing a quarter of a drop of 18%, while the price is also from the previous quarter fell to 71 euros on average € 65. It was heartening to note, however, the Nokia 5800 in the first quarter sales of 260 million units, this smart phone market in November last year, cumulative sales have exceeded 300 million units. Even Mr. Olli-Pekka Kallasvuo, Nokia CEO, agreed that is particularly acute in the recent environment, Nokia continued to invest in the concentration of consumer-oriented Internet services, and through a wealth of mobile terminals will be brought to the consumers of these products . He also believes that, in order to bring about integration of mobile consumer products and Internet service solutions, Nokia will also promote the development of the future, the outstanding performance on the 5800XM be delighted.

As a result of the impact of the global economic recession, operators and distributors have taken initiatives to reduce inventory, sales channels in the first quarter of this year with a significant reduction in inventory. This is Nokia's first quarter had a negative impact on sales, but also for the second quarter, Nokia is expected to demand greater certainty. They expected the second quarter, the mobile industry as a whole and the first quarter sales will be approximately the same, or even a slight rise. 2009, Nokia will continue to work to enhance the mobile terminal market share and reduce operating costs.

Nokia expects the industry as a whole in 2009 than the mobile terminal sales in 2008 fell by about 10%, mobile infrastructure and fixed infrastructure and related services market will drop 10%. At the same time, Nokia is expected as at the end of 2010, the terminal and services business to support the annual operating costs will be lower than 6 billion euros, with operating costs early in 2009 compared to 700 million euros lower, and would like to take this to the security of the global economy through recession.

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