Manufacturer�s sales remain steady, but margin declines.
Nokia, the world�s biggest handset manufacturer, has reported a 40% year on year decline in profits for the three months ended on 30 June 2010.
Profits at the manufacturer over the last three months were 227m euros (�191m).
Nokia reported that gross margin on devices and services has fallen to 30%, down 34% from the same period last year and down 32% on the last quarter.
Net sales of devices and services grew by 3% year on year from 6 586m euros to 6 799m euros, despite the margin on sales dipping by almost 4% during the same period.
The average sales price of Nokia devices declined by 4% when compared with the same period last year. In Q2 2009 a Nokia device sold for an average of 64 euros, the price dropped to 61 euros in Q2 2010.
In Europe, the handset giant saw sales of its devices remain steady. Sales in Europe increased by 1% year on year, but declined by 1% sequentially. Globally, mobile device volumes grew by 8% year on year.
Nokia estimates that its global market share is now around 33%, a fall of 2% from 35% in the second quarter of 2009.
Nokia CEO Olli-Pekka-Kallasvuo said: �Despite facing continuing competitive challenges, we ended the second quarter with several reasons to be optimistic about our future. For one, the global handset market has continued to grow at a healthy pace, led by some of the less mature markets where Nokia is strong. We are also encouraged by the solid second quarter performance of our mobile phones business, helped by an improving line-up of affordable models.
�In smartphones, we continue to renew our portfolio. We believe that the Nokia N8, the first of our Symbian^3 devices, will have a user experience superior to that of any smartphone Nokia has created. The Nokia N8 will be followed soon thereafter by further Symbian^3 smartphones that we are confident will give the platform broader appeal and reach, and kick-start Nokia's fightback at the higher end of the market.�
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