Nokia Announce Strong Profits

Global mobile phone handset manufacturer Nokia has announced market-beating profit figures over the final quarter of 2007, as it continues to increase its marketshare throughout emerging markets whilst managing to consolidate sales across more established regions in spite of the downturn in consumer spending and pressures on retail sales.

The Finland based firm has grown its manufacturing operation across continents over the last few years to become one of the most significant players in the mobile handset market, as it continues to steal marketshare from its major rivals, including Motorola which has experienced reverse fortunes in recent times.

Over the last quarter of 2007, the group sold some 133 million handsets and grew profits to in excess of £1.3 billion in spite of depressed consumer spending across the board as a result of the credit crunch and the collapse of the sub-prime sector.

Nevertheless, through rapidly growing its business in emerging markets, whilst continuing to build on its stronghold across more established markets in Europe and the US. Meanwhile, marketshare rose to over 40%, making Nokia the most significant player in the market by some distance.

Profit margins breached 23.8% over the period, pushing share prices in Nokia today up some 12% following the market-exceeding results, which look set to continue to provide strength for Nokia over 2008.

“Their phones are a little bit cheaper, very much tilted towards emerging markets. Basically, they’re taking market share from Motorola due to greater volume,” said market analyst Greger Johansson.

With its competitors struggling, and Nokia targeting its current product offerings to the emerging Asian markets, it looks as though Finland’s number one manufacturer will continue to enjoy continued success throughout the course of the next twelve months.

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