Nokia boosts shipments, market share

Nokia’s handset shipments rose to 111.7 million units in the third quarter, and its enterprise devices unit posted an operating profit for the first time. But its networks venture with Siemens continued to post a loss, dragging on Nokia’s stellar quarterly financial results.

Handset shipments increased 11% over the previous quarter and 26% over the last year’s third quarter. The vendor’s average selling price per handset, however, continued to drop from 93 euros to 82 euros (U.S. $117) year over year. The dip is part of a continuing trend as Nokia’s sales volumes shift from developed markets to developing markets, where the average sale price for devices is under 30 euros ($43). Boosted sales in those developing markets have allowed Nokia to capture more market share, though. The company estimated its third-quarter global market share increased to 39% from 38% in the second quarter and from 36% a year ago.

Some of the downward pressure on Nokia’s average selling prices were offset by growth in its high-end smartphone divisions. The enterprise unit, its smallest unit, posted operating profits of 88 million euros ($126 million), its first profit since Nokia launched its E series line of business phones.

Nokia Siemens reported an operating loss of 120 million euros ($172 million). Its net sales, however, were up 7% to 3.7 billion euros ($5.3 billion) from the second quarter, the first full quarter since the two companies combined their networks businesses.

In total, Nokia reported overall sales of 12.9 billion euros, up 28% from the previous year, and net profits of 1.56 billion euros ($2.23 billion), up 85% year over year.