Nokia profit plunges 90% on low demand
Apr 17 2009
Retail Wrap >>

Nokia's profit plummeted 90 percent in the first quarter as demand for cellphones continued to weaken amid a slump, the company said yesterday. The world's top cellphone maker said net profit was only €122 million (R1.5 billion) compared with €1.2 billion in the same period last year. 

Sales fell 27 percent to €9.3 billion, from €12.7 billion in the first quarter of last year. Nokia's share price surged almost 8 percent in Helsinki to €10.92 after the report.

Nokia maintained its previous estimate that the cellular device market would shrink by 10 percent this year and held on to its target of boosting market share. Nokia has fared better than many rivals during the world economic slump. But it, too, has been hit by falling demand. Last month it announced 1 700 layoffs worldwide.

"In what has been an exceptionally tough environment, we continue to invest in a focused manner in consumer internet services delivered across our broad portfolio of mobile devices," said chief executive Olli-Pekka Kallasvuo. "Combined, these solutions will drive our future growth."

Adapted from Source: www.busrep.co.za, 17 April 2009