Nokia, the number one mobile handset maker, has said that its operating profits fell 69 percent during Q4 of 2008, according to the Associated Press, and has painted a bleak picture for the mobile devices industry by saying that it expects it to fall.
Nokia reported that in its earnings report that its net sales were 26 euro cents (or 33 US cents) per share during Q4 2008, with sales at 12.7 billion euros; below the market expectations made by Reuters to have earnings of 30 euro cents per share and sales of 13.3 billion euros.
It’s net profit was at 576 million euros, below from the 1.84 billion euros it made in the same period in 2007; and carrying on the bad news was that its market share fell to 37 percent, down from the 38 percent market share it had in Q3 of 2008.
It also notes that it expects the mobile industry to fall by 10 percent compared to levels in 2008, and the decline should happen in the first half of the year. Previously, it predicted that the industry will decrease by 5 percent in 2009.
It’s operating cash flow for the fourth quarter was in the negative, with a loss of 0.3 billion euros; mainly because of a one-off payment to Qualcomm that was 1.7 billion Euros. Without the payment to Qualcomm, it would be at 1.4 billion euros.