Nokia sales up but weak dollar hits figs
The world’s biggest mobile phone maker Nokia signalled further growth for the handset market today but predicted that currency movements would mute its own sales figures.
The Finnish group upgraded earlier estimates of how many phones would be sold in the industry as a whole this year and said it would again beat competitors in terms of volumes in the final quarter.
But with the US dollar down sharply against the euro compared with last year, Nokia predicted its sales would be flat or up only slightly year-on-year in the final three months, with sales in dollars worth less than before.
The group has high hopes for its recently launched N-Gage phone which has just gone on sale around the world.
The model allows customers to play top computer games on their phone.
Results for the third quarter of 2003 published by Nokia today showed currency movements already effectively wiping out sales gains.
Chairman and chief executive Jorma Ollila said that volumes had grown by as much as 15% for the industry as a whole in the third quarter with Nokia racing ahead at 23% – resulting in a steady rise in market share.
But turnover, including sales of network equipment, was down 5% in line with expectations at €6.9bn during the three months – a figure which would become a 4% rise if constant exchange rates were applied.
Sales of mobile phones were flat at €5.6 bn but up 9% on a constant currency basis.
Strong growth in the Americas, including the US, was offset by a flat performance in Europe, the Middle East and Africa, and a fall in Asia Pacific.
Meanwhile, network sales were down by a fifth at €1.2bn – or down a more modest 13% in constant currency terms.
Nokia expects the mobile phone industry as a whole to sell around 460 million units this year – up from an earlier prediction of 445 million.
It expects volume growth in the industry to be in the mid-teens in the final quarter – a level it believes it can exceed.
