For Nokia, it was not all that bad. The Finnish mobile handset giant, which had reported its third quarter results for the fiscal 2006-07, continued its stellar performance. Its top line grew by a strong 20% year-on-year, while operating profits were up by 16%. The world's largest mobile handset maker's market share too improved significantly to 36% from 33%, a year earlier, and 34% in the second quarter of the current fiscal.
For Nokia, it was not all that bad. The Finnish mobile handset giant, which had reported its third quarter results for the fiscal 2006-07, continued its stellar performance. Its top line grew by a strong 20% year-on-year, while operating profits were up by 16%. The world's largest mobile handset maker's market share too improved significantly to 36% from 33%, a year earlier, and 34% in the second quarter of the current fiscal.
However, on the flip side, the financial scorecard also contains some bad news. The Finnish major's overall gross profit margin tumbled sequentially, dropping by 210 bps. The company attributed it to the sequential decline in both devices and networks gross margin. Margins were hit as a result of lower Average Selling Price (ASP), especially in its entry-level handset (sub-$50 cell phones) markets in countries like China and India, where it is the dominant player but faces stiff competition from Korean rivals like LG and Samsung and also arch- rival Motorola. |
