Was just doing my daily analysis of http://www.mobiletoday.co.uk when I came across an interesting article on the economical characteristics at Nokia. So here is a brief overview: -

  • Nokia’s mobile phone sales for Q4 2006 grew 14% to E7.1bn (£4.68bn) compared to same period in 2005, a strong Latin American Market helped achieve this.

  • Nokia’s Q4 operating profit for mobile phones increased 19% year-on-year to E1.26bn (£0.83bn) and operating margin increased from 17.1% to 17.8%.

  • Combined mobile device volume of Nokia’s mobile phones, multimedia and enterprise solutions business groups for the quarter was 106 million units, up 26% year-on-year.

  • In Europe, mobile device volumes increased by 11.4% to 33.3 million units. The manufacturer said its market share for the fourth quarter was 36%, a slight increase from 34% in Q4 2005.

  • Nokia’s group net sales for the quarter increased 13% to E11.7bn (£7.7bn). Operating profit increased by 11% to E1.5bn (£1bn), but operating margin fell from 13.2% to 13%.

  • For the full year, Nokia’s sales increased 20% to E41.1bn (£27bn), with Europe accounting for 38% of sales, a decline from 42% in 2005. The UK was the fourth largest contributor of sales, overtaken by India during the year.

  • Gross margin in 2006 was 32.5%, down from 35% in 2005, reflecting ‘the inability of certain higher end products…to compete effectively in various markets, coupled with a general shift to lower priced products driven primarily by the growth of the emerging markets and Nokia’s strong position in those markets.’

  • In 2006, net sales of mobile phones increased 19% to E24.8bn (£16.3bn). Operating profit increased 14% to E4.1bn (£2.7bn) but operating margin fell from 17.3% to 16.6%.

  • Nokia CEO Olli-Pekka Kallasvuo said: ‘Nokia was able to increase its share of the global device market significantly in 2006 to an estimated 36%, clearly solidifying our number one position in the industry.’

    • Visit here for full article by Mobile Today.