Mobile Monday - Breaking News: Nokia’s 2005 revenue reaches EUR 34.2 billion

By Administrator on February 1st, 2006
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Mobile Monday - Breaking News: Nokia’s 2005 revenue reaches EUR 34.2 billion
Q4 records over EUR 10 billion revenue
Nokia’s 2005 revenue reaches EUR 34.2 billion

Timo Poropudas

29 Jan 2006 at 20:19

Nokia is the price leader in China with its 1100 model.
Nokia is the price leader in China with its 1100 model. Nokia annouced its numbers for Q4 and the year 2005 on Thursday. October-December was first quarter that Nokia’s revenue surpassed ten billion euros.

For 2005, Nokia’s net sales increased 16 percent to EUR 34.2 billion, compared to EUR 29.4 billion in 2004. At constant currency, group net sales would have grown 20 percent in 2005.

Nokia’s gross margin in 2005 was 35.0 percent, compared to 38.1 percent in 2004. This reflected the higher proportion of entry level devices in the product mix in 2005 due to strong volume growth in emerging markets, which have the industry’s lowest average sales price.

“Our gross margin in 2005 was affected by intense price competition in both the device and infrastructure markets, as well as by the lower margin services business and emerging markets representing an increased share of Networks sales,� said Jorma Ollila, the chairman of the board.

In 2005, Nokia’s sales and marketing expenses were EUR 3.0 billion, up 15 percent from EUR 2.6 billion in 2004. Sales and marketing expenses were equal to 8.7 percent of net sales in both 2005 and 2004.

Research and development expenses were EUR 3.8 billion in both 2005 and 2004. Research and development costs represented 11.2 percent of net sales in 2005, down from 12.9 percent in 2004. Administrative and general expenses were EUR 0.6 billion in both 2005 and 2004.

Nokia’s operating profit for 2005 increased 7 percent to EUR 4.6 billion (including net positive special items of EUR 80 million), compared to EUR 4.3 billion in 2004 (including net positive special items of EUR 33 million). A substantial increase in Multimedia’s operating profit in 2005 more than offset operating profit declines in the other business groups. Nokia’s operating margin was 13.6 percent in 2005, compared to 14.7 percent in 2004.

Mobile Phones, Multimedia and Enterprise Solutions business groups, combined mobile device volumes were up 28 percent in 2005, compared to 2004, reaching 265 million units - a new annual volume record for Nokia.

Mobile Monday - Breaking News: Mobile retail to generate over USD 63 billion revenue by 2010

By Administrator on February 1st, 2006
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Mobile Monday - Breaking News: Mobile retail to generate over USD 63 billion revenue by 2010
uniper Research
Mobile retail to generate over USD 63 billion revenue by 2010

Timo Poropudas

29 Jan 2006 at 07:46

Juniper Research says that ringtone purchases have taught people use phone as payment instruments.
Juniper Research says that ringtone purchases have taught people use phone as payment instruments. Revenues from mobile ticketing and mobile retail services will assist the global mobile commerce market by generating over USD 63 billion worth of revenue by 2010, according to a new report from Juniper Research.

Mobile phone users, familiar with purchasing digital content such as ringtones and games, equipped with smart phones and accessing the mobile Internet via faster mobile data networks will increasingly use their devices for mobile commerce.

The report reveals that innovative use of technology such as mobile barcodes and integrating RFID into a mobile device coupled with consumer demand for easy to use applications is driving up the adoption of mobile ticketing and mobile retail services.

By 2010, 32 percent of Japanese mobile users will be buying tickets using a mobile phone, the report predicts.

By 2010, 87 million European mobile users (15 percent of total) will be using their mobile devices to buy tickets as the use of mobile barcodes is revolutionising the way we purchase and store tickets.

Juniper predicts that there will be sufficient consumer demand, adequate payment schemes available and enough retailers supporting these schemes to see worldwide mobile payment revenues reach over USD 10 billion by 2010.

Report author Alan Goode said: “The modern mobile phone and mobile network provides unparalleled levels of commercial potential. We are now beginning to enter the mCommerce era – and this era will see all of its expectations met.�