Nokia Mobile Mobile Device Sales Issues & Price Cuts?

Reuters reported:

Nokia slashes prices, to delay new software

So, I took a quick look at Nokia’s

Nokia Q1 2010 net sales EUR 9.5 billion, non-IFRS EPS EUR 0.14 (reported EPS EUR 0.09) (and) Growth in year-on-year net sales, operating profit and EPS (non-IFRS and reported)

reported yesterday (April 22).

There are two sections I found particularly interesting:

1. The table for: DEVICES & SERVICES MOBILE DEVICE VOLUME BY GEOGRAPHIC AREA

While the Year-over-Year change was a positve 16% for worldwide volume, North America was down -21% and was the only region that showed negative volume. The Quarter-over-Quarter change was negitive in every world region and was down -15% overall.

2. Average Selling Price. The average Nokia mobile device price in Q1 2009 was 66 Euros. It was 64 Euros in Q4 2009 and 62 Euros in Q1 2010. So, it would not be surprising if Nokia drops the average device price by another 2 Euros (to 60) with some devices (especially higher priced models) given larger percentage price cuts. This would be in line with Reuter’s report.



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