Nokia is about to report higher sales for their fourth quarter, but the news isn’t all rosy. Their pre-tax profits are likely to be lower than last year and their margins are under increasing pressure, according to analysts. Nokia is very strong in low-cost handsets, so they will show robust results in developing countries. Christmas is also a busy time for them, but popular phones from Sony Ericsson and Motorola will impact their results.
Nokia hasn’t given projections of their results, so Reuters surveyed 35 analysts instead. They anticipate earnings per share to increase to 0.25 euro, up from 0.24 euro last year. That is on projected sales of 10.0 billion euros, up 6 percent. Pre-tax profits are expected to fall 3.9 percent, though, to 1.496 billion euros. They still aren’t doing too badly, though, so we don’t need to start a collection for them.
Nokia’s focus on the developing market is a two-edged sword. On one side, their domination helps their total unit sales and market share to increase. On the other side, the low cost of those phones saw the average selling price of the company’s phones fall from 102 euros to 100 euros in the last quarter.