Nokia 2011 Annual Report Download - page 134

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Volume
Smart Devices volume increased 52.8% to 103.6 million units in 2010, compared to 67.8 million units in
2009. The year-on-year increase in our Smart Devices volumes in 2010 was primarily driven by an
improved demand environment in 2010, as well as strong unit growth in the smartphone market.
Average Selling Price
Smart Devices ASP decreased 23.0% to EUR 144 in 2010, compared to EUR 187 in 2009. The
year-on-year decline in our Smart Devices ASP in 2010 was driven primarily by increased proportion of
lower-priced smartphone sales and general price erosion driven by the intense competitive
environment.
Gross Margin
Smart Devices gross margin was 30.8% in 2010, down from 37.2% in 2009. The year-on-year decline
in our Smart Devices gross margin in 2010 was driven primarily by general price pressure and product
material cost erosion being less than general product price erosion.
Mobile Phones
The following table sets forth selective line items for Mobile Phones for the fiscal years 2010 and 2009.
Year Ended
December 31,
2010
Change
2009 to 2010
Year Ended
December 31,
2009
Net sales (EUR millions)(1) ........... 13696 (6.5)% 14 644
Mobile Phones volume (millions
units) ........................... 349.2 (4.1)% 364.0
Mobile Phones ASP (EUR) ........... 39 (2.5)% 40
Gross margin (%) ................... 28.0% 28.5%
Operating expenses (EUR millions) .... 1508 (22.1)% 1 935
Contribution margin (%) ............. 17.0% 15.3%
(1) Does not include IPR royalty income. IPR royalty income is recognized in Devices & Services
Other net sales.
Net Sales
Mobile Phones net sales decreased 6.5% to EUR 13 696 million in 2010, compared to EUR 14 644 billion
in 2009. On a year-on-year basis, our Mobile Phones net sales decrease in 2010 was due to declines in
both volumes and ASP.
Volume
Mobile Phones volume decreased 4.1% to 349.2 million units in 2010, compared to 364.0 million units
in 2009. The year-on-year decline in our Mobile Phones volumes in 2010 was driven by the intense
competitive environment and shortages of certain components in the second half of 2010, which was
partially offset by an improved demand environment.
Average Selling Price
Mobile Phones ASP decreased 2.5% to EUR 39 in 2010, compared to EUR 40 in 2009. The
year-on-year decline in our Mobile Phones ASP in 2010 was primarily due to general price erosion
driven by the intense competitive environment.
132