A harsh world economy is nobody's friend, just ask Nokia, the world's largest cell phone maker. Their profits were down a painful 66 percent in the second quarter of 2009. Sales weren't down nearly as much at 25 percent.
Nokia had a net profit of 380 million euros (535 million dollars) and sales of 9.91 billion euros.
Nokia had held 40% of the mobile phone market a year ago, but had dropped to 37% in Q1. In Q2 they rose to 38%. They shipped 103 million mobile phones in Q2, slightly more than analysts' expectations. It looks like some seriously low pricing helped keep sales volumes up since you can get a Nokia N85 for under $350 at Amazon and the new N97 is already being discounted by $100. The average selling price of a Nokia dropped 12 euros to 62. We assume the majority are on contract since Nokia is the strongest seller in Europe and Asia unlike the US. Emerging market handsets are a growing segment for Nokia in countries such as India and those phones are more basic and sell for very little.