Nokia’s numbers for Q2 are in and while the bad news outweighs the good by leaps and bounds, the good news is that, well, there is good news. First, the bad: Nokia’s Q2 operating profit was down a mind boggling 66 percent year over year to €775 million. 66 percent! Net sales dropped 25 percent YoY to €9.9 billion and EPS came in at €0.15, a 60 percent YoY decline. Ouch. On the brighter side of things, Nokia is still selling tons of phones even if it forgot how to make money in the process. The company showed a solid improvement compared to Q1 with a 7 percent increase in net sales and 103.2 million handsets shipped, up 11 percent from Q1. Global market share was somewhat of a bright spot as well, rebounding from 37 percent in Q1 to 38 percent in Q2. The 5800 XpressMusic was most definitely the shining star in Q2 just as it was in Q1; 3.7 million units sold this quarter… 6.8 million units in all… Over a million sold each month. Nokia has also hawked a total of 5 million E71s since launching the device — definitely a solid showing from a gorgeous handset. There’s one final bit of bad news unfortunately, and this where stockholders really started getting lightheaded:
- Nokia expects industry mobile device volumes in the third quarter 2009 to be at approximately the same level or up slightly sequentially.
- Nokia expects its mobile device market share in the third quarter 2009 to be approximately at the same level sequentially.
- Nokia continues to expect 2009 industry mobile device volumes to decline approximately 10% from 2008 levels.
- Nokia now expects its market share in mobile devices to be approximately flat in 2009, compared with 2008. This is an update to Nokia’s earlier target to increase its market share in mobile devices in 2009.
Nokia shares were down about 12 percent over night.