Nokia Grabs 40% Handset Share
The Finnish vendor has reported fourth-quarter net income of €1.8 billion (US$2.6 billion), or €0.47 a share, compared with €1.27 billion, or €0.32 a share, a year earlier. Revenues grew 34 percent to €15.7 billion ($22.9 billion) year-on-year.
As expected, the handset giant has achieved its aim of grabbing 40 percent of the global handset market by the end of 2007. That dominance is due in part to a "strong ramp up" in sales in developed and emerging markets, according to a research note from UBS Research 's Maynard Um.
Nokia's results are in stark contrast to rival Motorola Inc. (NYSE: MOT), which reported an 84 percent profit drop in its fourth-quarter results Wednesday. The Schaumberg, Ill.-based company said its handset sales fell 83 percent year-on-year and that its mobile devices unit will take longer to recover than expected. (See Motorola Quiet on Device Turnaround .)
Nokia is not the only handset vendor to benefit from Motorola's recent misfortunes. Samsung Electronics Co. Ltd. (Korea: SEC) has taken Motorola's traditional No. 2 spot behind Nokia, while Sony Ericsson Mobile Communications is the fourth-ranked vendor on the strength of its multimedia and feature phones. (See Gartner Reports on Handsets.) — Dan Jones, Site Editor, Unstrung