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Nokiaâ€™s net profit soars

23 April 2010 13:36 (UTC +04:00)

BakÄ± - APA-Economics. Mobile phone maker Nokia today reported a nearly three-fold growth in net profit at 349 million euros ($466 million )in the January-March period of 2010 on account of rising sales, NDTV.com reported.

In the year-ago period, the company had a net profit of 122 million euros, Nokia said in a statement. The company’s net sales rose 3 per cent from the year-ago period to 9.5 billion euros in the first quarter of 2010. In Q1, Nokia delivered both year-on-year net sales and operating profit growth, Nokia CEO Olli-Pekka Kallasvuo said.

But, he said, "We continue to face tough competition with respect to the high-end of our mobile device portfolio, as well as challenging market conditions on the infrastructure side. Nokia sold 108 million mobile handsets at an average selling price of 62 euros during the three-month period ending March 31, 2010, as against 93 million units at an average selling price of 65 euros a year earlier.

In the three months period, Nokia sold 29.2 million handsets in Asia Pacific regions in January-March quarter of 2010 from 28.2 million units year-earlier. The Finnish company’s estimated mobile device market share rose to 33 per cent during the quarter under review from 32 per cent in the same quarter of 2009.

Nokia continued to target its previous 2010 projection of 10 per cent growth in handset industry volume and expect a slight increase in market share compared with 2009. The company expects an operating margin in the range of 11-13 per cent in its devices and services segment in 2010, down from previous estimates of 12-14 per cent.