Business Anywhere Blog

Mobilizing the Business and Business of Mobile

Bleak Q4 for mobile handset makers

with 2 comments

Yesterday, both Nokia and Samsung announced dismal Q4 results due to the worldwide economic woes. Nokia announced their quarterly profits fell by 53% year over year from €2.6 billion in 2007 to €1.2 billion in 2008. Nokia’s market share fell from 40% in Q4 2007 to 37% in Q4 2008 which equals to 113 million units shipped in Q4. For 2008, Nokia shipped 305 million units, down 9% from 2007. The only bright spot in q4 for Nokia was its services and software sales which were up 37% to €158 million.

Samsung also reported a Q4 loss, its first ever since 2000. However, the loss was primarily due to its chips and LCD businesses. It mobile handset business actually grew in Q4 2008, posting an increase of 14% in sales over Q3 2008. However, its operating profit for Q4 was down by 69% over Q3. Samsung shipped approximately 200 million units in 2008 an increase of 22% over 2007. In Q4, it shipped 52.8 million units, an increase of 2% over Q3 2008 and 14% increase over Q4, 2007.

Sony Ericsson also suffered similar fate as Nokia and Samsung. SE shipped 24.2 million units in Q4 2008 which is 21% below Q4 2007 numbers. Its sales were consequently impacted and at €2.9 billion, were down by 23% over Q4 2007. It reported an operating loss of €262 million which is a 22% decline over Q4, 2007.

LG on the other hand had a great quarter fueled by solid demand in Europe and Asia. It shipped 25.7 million handset in Q4, 2008 which brought in $3 billion in sales revenue and reflect a sales growth of 40.3% YoY and 16% QoQ.

All companies expect Q1 2009 to be down by 5-10% from Q1 2008.

Advertisements

Written by dvdand

January 23, 2009 at 6:52 am

2 Responses

Subscribe to comments with RSS.

  1. “For 2008, Nokia shipped 305 million units, down 9% from 2007”
    CORRECTION: *468 million, +7% y-o-y*

    Nokia Interim Report
    Page 18/35 “Devices & Services”

    /V

    Vibhor JAIN

    February 3, 2009 at 9:30 am

  2. “For 2008, Nokia shipped 305 million units, down 9% from 2007″
    CORRECTION: *468 million, +7% y-o-y*

    Nokia Interim Report – Page 18/35 “Devices & Services”

    /V

    Vibhor JAIN

    February 3, 2009 at 9:35 am


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: