April 16, 2009 / 12:34 PM / in 10 years

HIGHLIGHTS - Nokia Q1 results conference call

STOCKHOLM (Reuters) - Nokia NOK1V.HE reaffirmed its outlook for the handset market and said visibility was improving, reassuring investors as the world’s top cellphone maker posted quarterly profit shy of expectations on Thursday.

Following are highlights from the conference call with Nokia’s Chief Executive Olli-Pekka Kallasvuo and Chief Financial Officer Rick Simonson.

ON SMARTPHONE MARKET

CEO: “I would say overall we will continue to see the smartphone as a concept increase in importance and (it) will be interesting for consumers.”

“I’m really sort of delighted that we did gain market share in smartphones here in Q1. I think that is very, very important for us. I think it is very encouraging and a foundation we can build on.”

ON TELECOM GEAR MARKETS

CEO: “The markets have continued to be weak over all, that was included in the earlier guidance already, but we have definitely seen further decline, in our understanding, in how the markets will develop in many markets.”

“Eastern Europe, Eurasia, Russia and some areas in Asia-Pacific are included here. So there is a small change, but a change anyhow, to our market size estimates.”

ON DESTOCKING

CEO: “We saw a lot of destocking happening in Q1.”

“I think the destocking impact has, in most markets, now reached the bottom.”

ON CHEAPER PHONES

CEO:” The utility that handsets provide has not disappeared, rather the macro environment is causing many people to trade down and purchase lower priced handsets.”

ON MARKET DEVELOPMENT

CEO: “In Q1, Nokia managed through an unprecedented channel inventory contraction, and I was pleased with our relative performance.”

“Although the trajectory of end-demand remains unclear, we believe the market is no longer falling in an uncontrolled manner. I am encouraged by the signs of stabilisation we saw at the end of the first quarter.”

ON NSN

CFO: Nokia and Nokia Siemens Networks continue to target for Nokia Siemens Networks’ market share to remain constant in 2009 compared to 2008.”

ON MACRO ECONOMIC RECOVERY

CFO: “At the management team we are firmly committed to reducing our operating expenses. We have a realistic view on the macro economic downturn and we do not expect a quick or strong recovery.”

ON NSN

CEO: “In Q1 NSN experienced extreme customer caution. However, that now seems to be slowly moderating as operators have assessed their own business performance and expectations for 2009.”

ON HIGH END PORTFOLIO

CEO: “While our N-series products delivered lower volumes than we expected in Q1 we are confident that our high-end portfolio is heading in the right direction. Currently the two fastest growing categories of the smart phones segment are touch screen and qwerty.”

In these areas we have strong momentum lead by the Nokia 5800 and the Nokia E71. More importantly, we are building on the momentum this year. We plan to bring to the market a much broader range of touch screen and messaging solutions.”

ON CHINESE MARKET

CEO: “Regarding China, it would appear that consumer sentiment improved during Q1, but the situation is fragile, and what would appear to be the early success of the Chinese government’s stimulus plan will continue to be important to improve consumer confidence and increase demand.”

“3G competition and rural subsidies should stimulate the handset and infrastructure market in the near term.”

ON MARKET

CEO: “Challenging industry conditions will continue in Q2. However, the vast majority of the channel inventory destocking appears to be behind us, and this should to lower industry volatility compared to the past two quarters.”

“Nevertheless it is too early to conclude that the end user demand has touched bottom. While certain regions may be showing signs of stabilization, the global economy as a whole remains weak, and we are planning our business accordingly.”

ON NOKIA 5800

CEO: “Today all sales channels are open, we have increased our capacity and we are shipping the Nokia 5800 at a rate of more than 1 million units per month.”

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below