Nokia, Apple, and Sony Ericsson: The Q2 financial results are out.
Tuesday, July 27, 2010
Nokia announced their Q2 financial results. To summarize - sales are up, profits are down.
The net sales for Nokia's mobile phone division were about 8.7$ billion (3% higher YoY and 2% higher QoQ). However, the operating profit has fallen to 823$ million (16% down YoY and 23% down QoQ).
Nokia attributes the falling gross margins to the noticeable drop in the average selling price for smartphones - it's 184$ for the second quarter of this year, down from 232 $ for last year's Q2. That's a 21% drop. And Nokia predicts this situation will continue into the third quarter as well.
Things were far better for Apple. and despite the iPhone 4's controversial issues, the financial results exceeded even Apple's own expectations leading them to break all sorts of records.
The results show that Apple's revenue is 15.7$ billion and the net profit is 3.25$ billion. Just a year ago those figures were 9.73$ billion revenue and 1.83$ billion net profit.
The record income comes from record sales - 8.4 million iPhones were sold during the quarter (an astonishing 61% growth compared to last year's second quarter) and the Mac lineup of computers sold 33% more units as well. The iPads reached 3.27 million units sold.
All eyes are on the next quarter now - and Apple has some bright plans for it as they are predicting a revenue of 18 billion US dollars. Considering they over-fulfilled their expectations for this quarter, they'll probably reach that goal and maybe even go further.
Speaking of good results, once again things are looking pretty decent for the Japanese-Swedish joint venture Sony Ericsson. The painful and expensive restructuring is obviously starting to pay off and the company has registered profits for a second quarter in a row.
The net profits are only 15.35$ million this time, 11.5 million less than in the first three months of this year, but this is a positive result nonetheless. And hadn’t it been for the 40$ million restructuring charges things would have looked even healthier for Sony Ericsson.
The company has managed to ship 11 million handsets over the past quarter, generating gross income of 2.24$ billion, a 25% increase compared to Q1 and 4% increase over Q2 of 2009. The market share of the joint venture remains unchanged at an estimated 4 percent.
As for the future forecasts, Sony Ericsson rely largely on the XPERIA X10 mini and X10 mini pro that started shipping at the end of Q2 to secure their long term growth.