Thursday 18 April 2013

Nokia's Q1 result are in: It's a bit better but there's still a long way to go!

   Nokia might still be in their huge fall from grace, but that doesn't mean things don't keep ticking over inside the Finnish giant. Their Lumia Windows Phones seem to be grabbing a bit more attention with every device release, but how are the sales looking?

   Well the latest quarterly earnings call shows improvement in Lumia sales once again! In the last quarter of 2012 they managed to ship 4.4 million devices and sales grew again last quarter, up 1.2 million to a grand total of 5.6 million! Of those devices Nokia claims that only one third of them are running versions of Windows Phone 7, the remain two-thirds were powered by Windows Phone 8. If we compare this to the Q1 2012 then sales of Lumia devices are more than 100% up from the 2 million which they had shipped! When everything is added together Nokia has now sold 19.9 million Lumia devices since their inception in November of 2011. That is by no means exception, but it's a good start! 

   If we break things down into regions slightly more, then things are looking better basically everywhere except for America. In the Greater China region revenues are up, something which has been attributed to the sales of the more expensive Lumia devices in the area, despite the company actually selling less devices as Symbian continues it's free-fall, as you can see in the chart below which suggests Nokia needs to get those cheaper Windows Phones selling in order to make up for the loss of Symbian sales! Symbian sales took a big hit as you can see in the tweet from Benedict Evans embedded below!

   Unfortunately for Nokia North American is proving difficult to crack still, with device sales sliding back down to a total of 400,000, making that 33% less than sales at the same time last year and this is notably less than the sales over the holiday season which gave a Q4 2012 sales total of 700,000 in the region.

   Sales are all well and good, but what really matters is the overall profit or loss. You might remember that in Q4 2012 Nokia managed to turn a small profit, but the Finns were back in the red this quarter, posting a loss of €150 million (which is around about $196 million or £128 million) on €5.85 billion ($7.65 billion or £5 billion) worth of revenue. Interesting the company regarded this as a relatively good result as their restructuring efforts have managed to bring the losses right down compared to the mammoth hit their bank account took in Q1 2012 of €1.34 billion!

   If you're interested in full details of how Nokia did then check out their full results PDF here!
Via TheVerge (1), (2)


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