Summary:

Nokia’s 3Q is one of those good news, bad news type scenarios. “The company beat Rev/EPS expectations and guided above Rev/EPS for next quarter,” writes Loop Capital and adds, “Nokia shipped a whopping 158M units shipped (industry) for the current quarter. Looking ahead, Nokia estimates 630 […]

Nokia’s 3Q is one of those good news, bad news type scenarios. “The company beat Rev/EPS expectations and guided above Rev/EPS for next quarter,” writes Loop Capital and adds, “Nokia shipped a whopping 158M units shipped (industry) for the current quarter. Looking ahead, Nokia estimates 630 million handsets shipped for the year!” That’s the good news. Bad news is that despite overall sales gain of 1percent, company’s average selling price fell from $114 to $106, which is off nearly $33 a handset from first quarter 2004. Nokia’s low price models might be the reason it is managing to see strong unit sales. That is just a sign that company is buying share by lowering prices. Why? Because its rivals have seen their ASP stay pretty steady. Sony Ericsson for instance has seen only seasonal price declines. More bad news: funky designs may make sense in equally funky Europe and Asia, but Stateside it means no sales. On the flip side, this is good news for Motorola. “This bodes well for Motorola,” Greg Gorbatenko of Marquis Investment Research told Business 2.0. “Nokia isn’t really stealing market share. The whole industry is doing well.”

You’re subscribed! If you like, you can update your settings

Comments have been disabled for this post