Nokia reported second-quarter’s net profit fell 61 percent
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On Thursday Nokia announced second-quarter earnings report, because of the closure of the German factories, reduced demand and the continuing impact of the weak dollar, its net profit fell 61 percent year-on-year, the first time in more than a year has declined.
According to foreign media reports, Nokia’s second-quarter net profit fell 61 percent from last year’s 2.83 billion euros (about 4.49 billion U.S. dollars) dropped to 1.1 billion euros (about 1.75 billion U.S. dollars), earnings per share of 46 cents a share . Its second-quarter total revenue rose 4 percent to 13.15 billion euros (about 20.9 billion U.S. dollars).
Nokia said its second-quarter handset market share from the second quarter of 2007 increased 38% to 40%. At the same time, Nokia has also enhanced the global mobile phone shipments expected, that will increase over the previous estimate of 10 percent. Nokia CEO Olli-Pekka Kallasvuo (Olli-Pekka Kallasvuo) said: "The second half of this year was optimistic about the market demand, and we will be listing of the new products has been good feedback."
But in fact, as the low-cost mobile phone sales soared and the continuing impact of the weak dollar, Nokia’s average selling price has been declining. The second quarter, Nokia’s average selling price was 117 dollars, lower than the first quarter of 125 U.S. dollars and in 2007 the second quarter of 143 U.S. dollars. Mobile phone sales in North America gained 10 percent and had not much fluctuation in Europe. Meanwhile, the depreciation of the dollar also reduced the average selling price of handsets. Before this earnings released, Nokia’s shares have dropped 41 percent, decline in market value of 61.8 billion euros. After the earnings release, shares rose 6.8 percent in Helsinki.
