Nokia, the world's largest mobile phone maker, Thursday reported lower sales and a decline in profits for the second quarter of 2009, according to dpa. The Finnish-based company posted a pre-tax profit of 380 million euros (533 million dollars), compared to 1.47 billion euros for the corresponding business period in 2008. The share price was down 8 per cent in early afternoon trading after the group said it did not expect to increase its market share. Nokia Chief Executive Olli-Pekka Kallasvuo said the group had "put in a solid performance in what was yet another tough quarter." Second-quarter sales dropped 25 per cent year-on-year to 9.9 billion euros, the group said. The operating profit was 427 million euros, compared to 1.47 billion euros for the corresponding business period in 2008. The company sold 103.2 million units, down 15 per cent year-on-year and up 5 per cent compared to the first quarter of 2009. Nokia estimated its share of the global mobile handset market to be 38 per cent, up from 37 per cent in first-quarter 2009 but down 2 percentage points year-on-year. In its outlook, Nokia said it expected the global handset market to decline some 10 per cent for 2009, echoing its earlier estimates and that of rival Sony Ericsson. Nokia forecast its share of the market would remain flat for 2009. The group said it sold 23.3 million units in Europe, down 14 per cent while in Asia and the Pacific region sales fell 17 per cent to 30.3 million units. Sales in Latin America declined 41 per cent to 8.9 million units, and were down over 28 per cent to 3.2 million units in North America. Sales in China meanwhile increased some 5 per cent to 18.6 million units, while sales dipped 10 per cent to 18.9 million units in the Middle East and Africa. Other trends included lower average selling prices for its handsets. The average second-quarter selling price was 62 euros, down from 65 euros in the first quarter, and down from 74 euros in second-quarter 2008. Net sales for the 50-50 joint venture Nokia Siemens Networks - launched 2007 between Nokia and Germany's Siemens - declined 21 per cent year-on-year to 3.2 billion euros.
