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Wednesday, July 29, 2009

Q2 Mobile sales: No surprises but lots of good news


Nokia, the world's largest maker of mobile phones, reported Thursday that its second-quarter operating profit fell 71 percent to 427 million euros ($600 million) from 1.47 billion euros during the same quarter a year earlier.

The company also reported that sales fell about 25 percent to 9.9 billion euros in the second quarter. But sales were up 7 percent sequentially from the first quarter of 2008.

Nokia shipped 103.2 million units during the quarter, which was down about 15 percent compared with a year earlier. But shipments were up 11 percent sequentially compared with the first quarter of this year.

Nokia said that it increased its market share sequentially for global sales of mobile phones to an estimated 38 percent. And its smartphone market share grew sequentially to 41 percent.

Toward the end of the second quarter, Nokia brought its N97 smartphone to the U.S. market.

It was bound to happen, but we didn’t think the Nokia N97 would outsell the Nokia 5800 quite as quickly as it has. However, from sales figures that have just been released, it looks like the big fight of the summer is going to be between Nokia’s two touchscreen smartphones.

The top ten phones currently being sold by Vodafone looks something like this:

1. Nokia N97 32GB
2. Nokia 5800
3. Sony Ericsson W595
4. Sony Ericsson C510
5. Samsung Jet
6. Samsung Tocco Ultra Edition
7. Samsung Steel L810
8. Nokia 6300
9. BlackBerry Storm
10. HTC Magic

South Korean company Samsung Electronics Co., Ltd recently announced the earnings results for the second quarter of the ongoing year. Globally, the company registered an 11.7 percent increase in revenues during the quarter on a yearly basis, reaching 32.51 trillion Korean won, and posted 2.52 trillion won operating profit, up 436 percent compared to the previous quarter of the year.

Samsung’s Telecommunications business also went up compared to the same time frame last year, reaching 10.04 trillion won in revenue, or a 27.4 percent increase, while the operating profit was of 1.00 trillion won, with a 10 percent margin. During the three-month period, the company says, its mobile phones sales reached 52.3 million units, marking a 14 percent increase compared to the previous quarter.

LG Electronics posted a record quarterly profit on strong mobile phone and TV sales, helping it win market share from rivals Nokia and Motorola today. However concerns over weaker margins may stall a rally in its shares.

LG, which trails Nokia and Samsung in mobile phones, sold a record 29.8 million handsets in the second quarter, up from 22.6 million units in January to March.

It posted an 11 per cent operating profit margin in handsets, compared with 6.7 per cent in the first quarter, a figure Choi said was "pretty remarkable."

The company's operating profit margin was 7.8 per cent in the second quarter and was at 4.3 per cent for all of 2008.

Fourth ranked Motorola is working to narrow losses through cost cuts in the face of sharp drops in sales, while world fifth maker Sony Ericsson is also braced for a tough second half of 2009 as a demand slump hits its stronghold mid-range products focused on camera and music features.

Apple's quarterly results were better than forecast, thanks to strong iPhone sales, including its new 3GS model.

Net profits hit $1.23bn (£953m), or $1.35 a share, in the fiscal third quarter to 27 June, from $1.07bn, or $1.19 a share, a year earlier.

The US technology giant sold more than 5.2 million iPhones in the quarter, seven times more than a year earlier.

Apple chief financial officer Peter Oppenheimer said: "We are very proud of this result, particularly given the economic climate around us."

He also admitted that Apple was "currently unable to make enough iPhone 3GS to meet high demand and we are working to improve that".

Apple also hopes to make the iPhone available in more countries than the current 18, including China "within a year".

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