Surprising markets today, Nokia reported double-digit growth in the first quarter and raised its earlier estimate of the global mobile handset market in 2005 to 740 million units.
The world's largest mobile phone maker saw net profit jump 18% to EUR 863 million, or EUR 19 cents a share, in the three months ending March 31, from EUR 729 million or EUR 16 cents a share, a year earlier. Net sales rose 17% to EUR 7.4 billion, compared with EUR 6.3 billion in the first quarter of 2004. At constant currency, group net sales would have increased 19%. All business groups contributed to the year-on-year sales growth.
First-quarter 2005 net sales grew 11% year on year to EUR 4.5 billion, compared with EUR 4.1 billion in the first quarter 2004, driven by good demand. Sales growth was strongest in China, followed by Asia Pacific and Europe/Middle East/Africa, partially offset by sales declines in North America and to a lesser extent in Latin America. Operating profit decreased 16% to EUR 869 million, compared with EUR 1.0 billion in the first-quarter 2004, with an operating margin of 19.2% (25.2%).
In addition to an existing range of software customization options, Nokia is providing GSM operator customers with greater possibilities for mobile phone customization. During the first quarter, the Nokia 6101 folding camera phone became Nokia's first GSM mobile phone available in an exclusive operator design. China Mobile Communications Corporation also became the first to offer an exclusive operator design to the China market in the form of the Nokia 6102.
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 camera phone, which adds a megapixel camera, push-to-talk functionality and a built-in stereo music player to the highly popular Nokia 6230; the Nokia 6021, an affordable business-oriented phone with push-to-talk technology, voice activated dialing, enhanced connectivity and synchronization options with Bluetooth wireless technology; and the Nokia 6030, a dual-band phone with easy messaging functionality and advanced ergonomics. The Nokia 6101, 6230i and 6021 are expected to start shipping in the second quarter and the Nokia 6030 in the third quarter of 2005.
Nokia announced seven new CDMA handsets designed to strengthen and add depth to Nokia's CDMA product portfolio. These devices include the Nokia 2115i, an affordable phone targeting first-time and prepaid wireless users, the Nokia 3152, Nokia 3155 and Nokia 3155i, all mid-tier folding phones, and the Nokia 6152, Nokia 6155 and Nokia 6155i, folding camera phones with advanced features.
The Nokia 2115i is expected to start shipping in the second quarter, the Nokia 3152, Nokia 3155 and Nokia 3155i in the third quarter, and the Nokia 6152, Nokia 6155 and Nokia 6155i in the fourth quarter 2005.
