Nokia Mid-Quarter Conference Call with O-P Kallasvuo:
These mid-quarter conference call notes were taken by 'zmg' on the Nokia TMF thread. I caught only the last few questions of the relatively short CC this morning so will have to listen this evening although I can't say that I am looking forward to the network side news and I must say that the network side news does not bode well for the industry in general.
ZMG's notes:
Nokia Mobile phones:
* Strong profitability, healthy growth, volumes developing well, new product offerings proceeding as planned. ASPs appear to have stabilized, excellent margins.
* Lower ASPs and volumes in 1Q than earlier expected. Volume change seems to be due to market, market share as planned, all markets slightly lower than earlier expected.
* Channel inventory situation improved a bit from year-end, and it was already at normal level that time.
* Products that have started shipping in 1Q: 2100, 3650, 5100, 6100, 7250, 8910. In addition 6800 will ship in March.
* 3510i, 6610, 6100, 7210 and 7650 have sold as planned.
* 3510i is now 2nd largest volume product in the portfolio. Color is growing in share.
* 3650, 5100 and 7250 are selling according to expectations.
Nokia Networks:
* 15-20% sales decline (year-on-year), operator investments continue declining, poor sales, high 3G costs. Break-even hard to reach without further cost-savings. Networks have a lot of "inherent flexibility" (whatever that means), and they will continue to talk about further measures.
* Sales decline was not a result of loss in market share.
* 3G gross margins lower than 2G. It has been difficult to estimate margins and costs of 3G deliveries.
* Some restructuring costs are included in pro forma results.
* Very bad start for the year for the overall (infrastructure) market.
/ZMG
- Eric - |
