Nokia projects net sales increase by 2nd quarter

CEBU, Philippines - Following a solid first quarter performance, Nokia expects to post EUR 6.1 billion to EUR 6.6 billion for its global devices and services net sales for the second quarter of this year.

In a report, Nokia posted EUR 10.4 billion net sales for the first quarter of this year, a nine percent increase compared to EUR 9.5 billion recorded in the same period of 2010.

Devices and services recorded net sales of EUR 7.1 billion, up by six percent year-on-year resulting primarily from higher average selling price (ASPs).

Services net sales contributed to the total devices and services net sales with EUR 211 million in the first quarter 2011 compared with EUR 148 million in the first quarter 2010 and EUR 201 million in the fourth quarter 2010.

NAVTEQ reported net sales of EUR 232 million. The 23 percent increase year-on-year is primarily driven by improved sales of map licenses to mobile device customers as well as improved vehicle sales and higher navigation uptake rates in the automotive industry offset to some extent by lower personal navigation devices (PNDs) sales.

On the other hand, net sales of Siemens Networks increased by 17 percent to EUR 3.2 billion, year-on-year reflected by the growth in both the product and services businesses in most regions.

Nokia Siemens Networks also reported gross profit increased by eight percent to EUR 847 million compared with EUR 782 million in the first quarter 2010.

In the same report, Nokia also announced a new strategy, including changes to its leadership and operational structure designed to accelerate the speed of execution in an intensely competitive mobile products market.

"In the first quarter of 2011, we shifted from defining our strategy to executing our strategy. On this front, I am pleased to report that we signed our definitive agreement with Microsoft and already our product design and engineering work is well under way. We are fully focused on delivering the needed accountability, speed and results to positively drive our future financial performance,” said Stephen Elop, Nokia chief executive officer (CEO).

The main elements of the new strategy were: the broad strategic partnership with Microsoft to build a new global ecosystem for smartphones; bringing affordable mobile products that enable efficient web browsing and access to other apps and innovations; and making MeeGo an open-source mobile operating system project.

The Nokia Leadership Team replaced the Group Executive Board. And the new operational structure features two distinct business units in Devices & Services business: Smart Devices and Mobile Phones, focusing on Nokia's key business areas: smartphones and mass-market mobile phones.

Nokia also announced several new mobile phones: Nokia X1-00, an affordable Series 30-based, music-centric mobile phone and the Nokia E6 and Nokia X7, two new smartphones aimed at business people and entertainment enthusiasts respectively. They are the first Nokia smartphones shipping with Symbian Anna, the latest version of the Symbian software featuring new icons and usability enhancements. Shipments of the Nokia E7, a business smartphone featuring the Nokia ClearBlack technology also started.

Furthermore, Nokia continued to develop its Ovi services. During the first quarter 2011, downloads of applications and content on Ovi Store reached up to 5 million a day. Increased demand for apps from the approximate 200-million-strong Symbian consumer base has seen the Ovi Store catalog grow to more than 40,000 apps, with about 1,000 added per week.