Nokia Earnings Dip on Low Cost Phones Sales

23 October 2006

KEILALAHDENTIE, Finland: The world's biggest cellphone maker Nokia saw third quarter net profits slip by 4.1% as low-priced phones continued to drive sales in emerging markets.

The company reported net income of €845 million ($1.06bn; £566m) compared with €881 million a year earlier. Nokia's sales rose 20% to €10.1 billion from $8.4bn billion.

Ceo Olli-Pekka Kallasvuo said the strong growth in entry-level phones coupled with a lower percentage of sales in higher end products impacted negatively on margins.

Nokia raised its full-year forecast for the global mobile phone market to 970 million units, from around 915 million. This new forecast represents year-on-year growth of 22%.

Data sourced from Wall Street Journal Online; additional content by WARC staff