Nokia has suffered losses and lost market share last year due to the increasing popularity of smartphones and also for the gloomy economic conditions.
But, according to the recent financial reports, Nokia has reported a big jump in quarterly profits with stronger-than-expected rise in fourth quarter net profit.
BBC reported, “Net profits came in at 882m euros ($1.2bn; £760m) for the last three months of 2009, a 53% increase on the 576m euros recorded a year earlier.”
According to a Wall Street Journal article, Nokia has sold 127 million mobile phones at an average selling price of EUR63 in the fourth quarter, compared with 113 million units at a EUR71 average selling price a year earlier.
Nokia’s Chief Executive, Olli-Pekka Kallasvuo said, "We grew our market share in smartphones in the fourth quarter, driven by the successful launch of new touch and QWERTY models".
He also said that "Our performance in smartphones, combined with continuing success in the emerging markets, helped us increase sales in our devices & services unit, both quarter-on-quarter and year-on-year."
During an interview with a television news channel CNBC, Mr Kallasvuo said that consumers have turned more confident and Nokia sees its future growth in the emerging markets.
Wall Street Journal further reported:
Greger Johansson, an analyst at Redeye, said that Nokia's Q4 result and Q1 outlook beat market expectations in almost all aspects, which is helped by strong sales volumes and margins.
Another analyst, Pierre Ferragu at Bernstein, added that Nokia "has a stabilized pricing power and will fully benefit from the rebound in handsets in 2010."
