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Two of the biggest mobile phone firms foolish enough not to have invented the iPhone have delivered very bad news this morning, with both Nokia and Sony Ericsson suffering declines in sales and revenues.

Nokia has posted revenues of €9.9 billion for Q2’09, down 25 per cent year-on-year, but up seven per cent from Q1. The company has also cut its H2’09 operating profit margin forecast for its handset unit to 11.3 per cent from 13-19 per cent previously.

Nokia has reiterated its belief that 2009 total industry mobile device volumes will fall 10 per cent from 2008 levels. It now expects its own market share in mobile devices to be flat in 2009, compared with 2008.

Nokia previously said its target was to increase its market share in mobile devices in 2009.

The company shipped 103.2 million units during the last quarter, down 15 per cent year-on-year and up 11 per cent sequentially.

Nokia estimates that its market share is now at 38 per cent, down from 40 per cent in Q2’08 and up from 37 per cent in Q1’09.

Meanwhile, Sony Ericsson’s Q2’09 handset sales hit 13.8 million units at an average selling price of 122 euros. The figure reflects the ongoing decline of Sony Ericsson in the device market.

The firm said its market share was over five per cent in the second quarter, compared to six per cent in 1Q. It’s the world’s fifth largest device maker.

More alarmingly, unit sales showed a decrease of 43 per cent year-on-year, although this does chime with market-wide contraction.

Sony Ericsson’s pretax loss of 283 million euros was in line with expectations, including one million euros in restructuring charges. It said cost cutting and a better product mix had contributed to losses shrinking from the 358 million euros of the previous three months.

Stories originally published on Mobile Entertainment


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