Nokiaâ€™s officials reported that sales of mobile phones for Q4 2006 grew 14% to E7.1billion (Â£4.68bn) compared to the same period in 2005, helped by a strong Latin American market. The average selling price of Nokia’s mobile devices declined by E10 (Â£6.6) to E89 (Â£59) over the year. Reports also show that Nokia’s Q4 operating profit for mobile phones has increased 19% year-on-year to E1.26bn (Â£0.83bn) and operating margin increased from 17.1% to 17.8%. The combined mobile device volume of Nokia’s mobile phones, multimedia and enterprise solutions business groups for the quarter was 106 million units, up
26% year-on-year. In Europe, mobile device volumes increased by 11.4% to 33.3 million units. The manufacturer said its market share for the fourth quarter was 36%, which meant a slight increase from 34% in Q4 2005 Gross margin in 2006. These figures reflect ‘the inability of certain higher end productsâ€¦to compete effectively in various markets, coupled with a general shift to lower priced products driven primarily by the growth of the emerging markets and Nokia’s strong position in those markets.’ In 2006, net sales of mobile phones increased 19% to E24.8bn (Â£16.3bn). Operating profit increased 14% to E4.1bn (Â£2.7bn) but operating margin fell from 17.3% to 16.6%. Nokia CEO Olli-Pekka Kallasvuo said:
Nokia was able to increase its share of the global device market significantly in 2006 to an estimated 36%, clearly solidifying our number one position in the industry.
[tags]Nokia, device market, Q4, Europe, position[/tags]