Devices & Services net sales increased 4% to €7.2 billion. Devices & Services gross margin was 29%, down from 30.9% in Q3 2009 and 30.2% in Q2 2010. Shipments in North America increased by 3% y-o-y and 23% q-o-q, to 3.2 million. Latin America market showed double-digit growth of 20%, Europe grew 8%, and Greater China 9%, while Asia-Pacific declined 9% and the Middle East and Africa declined 6%.

IDC recently reported that Nokia’s market share in India, its second-largest market after China among the emerging markets, declined to 36% from 54% last year. This is alarming news for Nokia, which refuted such claims, mentioning that IDC did not count shipments from its Chennai factory. Nokia not only competes with Apple and RIM in the high-end market but also with local vendors in the low-end market. Nokia has also been slow to bring out popular features such as dual-SIM card phones and social networking apps.

For the fourth quarter, Nokia expects Devices & Services sales to be €8.2 billion to €8.7 billion. It is trading around $11 after hitting a 52-week low of $8 on June 29.

Will a New CEO Herald Dramatic Change?
To revive Nokia, dramatic changes are expected from its new CEO, including a much-needed emphasis on the North American market. IDC reports that Nokia’s global smartphone market share slid from 40.3% last year to 38.1% in the second quarter. When the iPhone was first launched in 2007, Nokia was complacent and hasn’t been able to come up with any smartphone to live up to the tough competition that ensued.

There have been some significant management changes since Nokia hired its new CEO. Head of the smartphone division Anssi Vanjoki was the first to resign and has a six-month notice period. Vanjoki’s resignation was followed by that of chairman, Jorma Ollila, and the head of the new MeeGo mobile platform, Ari Jaaksi. It looks as though the Finnish management have pretty much revolted against the board’s decision to hire a North American CEO. This may not be a bad thing. A new, more North America– and emerging market–oriented management team will be needed to turn the company around, anyway.