MobileMonday Global

^{Claims 39% handset market share} A new third quarter record for Nokia

Nokia revealed Thursday an 85 percent rise in third quarter net profit to 1.56 billion euros. Overall sales climbed by 28 percent to 12.9 billion euros, up from 10.1 billion a year earlier.

The Nokia share price jumped by 5.67 percent to 27.04 euros on the Helsinki stock exchange on the news.

Nokia said that it has an estimated market share of 39 percent.

Handset sales inched up by three percent to 6.1 billion euros during the quarter. In terms of volume the group sold 111.7 million handsets, an increase of 26 percent from the same quarter a year ago and three million more than the market had expected.

Nokia's average selling price slumped from 93 euros a year ago to 82 euros, well below analysts’ forecasts of 89 euros.

Olli-Pekka Kallasvuo, Nokia’s CEO, said that Nokia strengthened its position in the device industry in the third quarter.

“In a strong market, we simultaneously gained market share and increased our operating margins. The quality and depth of our device portfolio continues to give us a good competitive edge and we believe our portfolio looks promising for next year.”

Nokia expects industry mobile device volumes in the fourth quarter 2007 to be up sequentially and Nokia’s device market share in the fourth quarter 2007 to be approximately at the same level sequentially. This would lead to an estimated increase of our market share in the full year of 2007.

The company expects that the mobile device market volume will be approximately 1.1 billion units in 2007, up from the approximately 978 million units Nokia estimated for 2006.

The device industry value will grow in 2007, but there will be some decline in industry ASPs, primarily reflecting the increasing impact of the emerging markets and competitive factors in general, Nokia says.

On the other hand, the mobile and fixed infrastructure and related services market in euro terms in 2007 will see very slight market growth.

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NOKIA IN THE THIRD QUARTER 2007*
EUR million	Q3/2007**	Q3/2006**	Change
Net sales	12 898	10 100	28 %
Mobile Phones	6 131	5 949	3 %
Multimedia	2 580	2 092	23 %
Enterprise Solutions	526	257	105 %
Nokia Siemens Networks	3 674	1 804
Operating profit	1 862	1 100	69 %
Mobile Phones	1 388	779	78 %
Multimedia	575	366	57 %
Enterprise Solutions	88	-65
Nokia Siemens Networks***	-120	131
Group Common Functions	-69	-111
Operating margin (%)	14.4	10.9
Mobile Phones (%)	22.6	13.1
Multimedia (%)	22.3	17.5
Enterprise Solutions (%)	16.7	-25.3
Nokia Siemens Networks (%)***	-3.3	7.3
Net profit	1 563	845	85 %
EPS, EUR
Basic***	0.4	0.21	90 %
Diluted***	0.4	0.21	90 %

Source: Nokia; * As of April 1, 2007, Nokia results include those of Nokia Siemens Networks on a fully consolidated basis. Nokia Siemens Networks, a company jointly owned by Nokia and Siemens, is comprised of the former Nokia Networks and Siemens' carrier-related operations for fixed and mobile networks. Accordingly, the results of Nokia Group and Nokia Siemens Networks for the third quarter 2007 are not directly comparable to results for the third quarter 2006. Nokia's third quarter 2006 included the former Nokia Networks business group only.

** Q3 2007 special items:

- EUR 86 million restructuring charge and other one-time items in Nokia Siemens Networks (impacting Nokia Siemens Networks operating profit)

- EUR 60 million gain on sale of real estate (impacting Group Common Functions operating profit)

- Excluding special items, diluted EPS was EUR 0.40

** Q3 2006 special items:

- Mobile Phones operating profit included charges of EUR 128 million primarily related to the restructuring of the CDMA business and associated asset write-downs.

- Excluding this special item, diluted EPS was EUR 0.23.

*** Important note to Nokia Siemens Networks Q3 2007 operating profit and Nokia EPS: In addition to the 'special items' listed above, Nokia Siemens Networks reported operating profit also included EUR 144 million in intangible asset amortization and other Purchase Price Accounting

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