The last few weeks have seen the releases of most of the major manufacturers Q3 Financial Results.
These results are the Key Indicators of how the industry has been affected by the global Credit Crunch and whether the manufacturers are successfully riding out the storm.
Hit the Jump for the full info on all the results.
So we start with Nokia.
Nokia reported that their sales increased by 5% over Q2 but year-on-year compared to 2008, they are still 19.6% lower. With the major release of their “flagship” N97, it seems that sales have increased but a key point is they are reporting that their operating profits are down 1.9% over Q2 and 50.2% over last year.
Nokia shipped 108.5million mobile handsets in Q3, which is down 8% on 2008 and up 5% on Q2. This equates roughly to a 38% market share.
At present for Samsung, we don’t have a lot of information but we do know that Samsung’s consolidated revenue for the three months to September 30th is 36 trillion Korean won (approx 31 billion US dollars) whilst their consolidated operating profit is 4.1 trillion Korean won (approx 3.5 billion dollars). These figures show that Samsung is finally beginning to shake off the effects the global credit crunch has had on the company.
Moving on to HTC, the leaders in the Windows Mobile field, who reported an 18% decrease in net profit compared to 2008, with Q3 2009 bringing in 179 million US dollars. HTC total revenue decreased to 1.06 billion US dollars from 1.18 billion in 2008. The achieved revenue of 1.06billion is at the bottom end of their July forecasts of 1.06-1.12 billion dollars.
LG have had a very successful Q3 2009, as they recorded their highest-ever revenue and profit for this period of the year. The group’s consolidated revenue reached 11.2 billion US dollars – a 15.7% increase on Q3 2008, whilst operating profit reached 685 million US dollars – a 1.3 increase on Q3 2008.
LG Mobile is one of the best performing divisions for LG, and it recorded sales figures of 3.75 billion – a 21.9% year-on-year increase. LG Mobile operating profit increased 8.4 percent to 314 million US dollars.
Interesting, LG Mobile’s operating profit accounts for approximately 45% of the conglomerate’s operating profit, whilst LG Mobile sales account for approximately 33% of the group’s sales – this shows the actual value that LG Mobile presents as a part of the whole LG conglomerate.
Apple have reported amazing success recently. Apple’s revenue totalled 9.87 billion US dollars in Q3, an increase of 24.9% on Q3 2008, whilst their net quarterly profit was 1.67 billion US dollars – an increase of 46.5% on Q3 2009.
7.4 million iPhones were sold during Q3, an increase of 7%, which leads to Apple’s market share being approximately 2.1%. As it is only “high-end” handsets that Apple produce (take it to mean what you want), 2.1% is a serious market share and if they bring out budget-options or different style handsets, I’m sure that that figure will increase.
Everyone knows Sony Ericsson have had the rough of it over the last year. Massive boardroom changes, decreasing sales and the need to find 150million euros by April to stay in business.
Everyone looked in interest at the Sony Ericsson Q3 financial reports and well, let’s say we were not left disappointed. There are many Sony Ericsson afficianados in the world and they’ll find both gloom and hope in the financial reports that they publicised.
Firstly, the company managed to ship 14.1 million mobile handsets which accounts for approximately 5% of the market share and is a 0.3 million increase over Q2. However, it is still 11.6million lower than Q3 2008.
Sony Ericsson operating profit comes in at a loss of 193 million euros, which whilst bad, shows an improvement over the 274 million euro loss they reported in Q2 2009.
Finally we move onto Motorola. Once the kings of the mobile phone industry, their mobile division seem to be heading into the abyss last year and the end looked in sight. However, the end hasn’t come yet, and the company (Motorola) as a whole looks healthy enough.
Their market division is still lagging behind, recording a loss of 183 million US dollars. Sales totaled 1.7 billion US dollars – a decrease of 46% year on year on 2008. Their loss of 183 million represents serious growth compared to the 840 million dollar loss for Q3 2008, or the 253 million dollar loss for Q2 2009.
Motorola market share is approximately 4.7% of the total industry – identified by the 13.6million handsets they shipped (0.5 million short of Sony Ericsson result).
Overall, the reports show varying degrees of success with LG & Apple reporting increases on 2008 and other manufacturers reporting quarter-on-quarter increases but year-on-year decreases.
The figures seem to show an increase in the number of handsets shipped but a key fact is profits are down meaning that manufacturers are feeling the pinch, as such.
It will be interesting to see the Q4 2009 reports and Q1 / Q2 reports 2010.