Linked by Thom Holwerda on Tue 29th Oct 2013 15:04 UTC
PDAs, Cellphones, Wireless

Nokia has just announced its Q3 2013 financial results, revealing an operating profit of EUR118 million ($162 million) from EUR 5.66 billion ($7.8 billion) revenue. That's up massively year over year, but nonetheless represents another quarter of middling results. The report is the first since Microsoft agreed to purchase Nokia's phone business, and that division - Devices and Services - performed as expected, posting a small loss of EUR 86 million ($118 million).

So, Microsoft is buying the part of Nokia that is losing money, while the parts that make money remain in Finland. Seems like a good deal for Nokia-proper. In the meantime, Microsoft will be saddled with a devices division that is still losing money, and whose increase in sales consists largely of low-end, low-margin devices (like the 520). Interesting - especially since Windows Phone was supposed to prevent Nokia participating in a race to the bottom. I'm sure Microsoft's super-successful Surface division welcomes Nokia's devices division.

The cold truth: even more than 2.5 years after announcing the switch to Windows Phone, Nokia's Lumia range still cannot make up for drop in sales of Symbian devices and feature phones. This is roughly the same timeframe in which Samsung rose to the top. With Android.

Read into that what you will.

Permalink for comment 575786
To read all comments associated with this story, please click here.
RE: Comment by Nelson
by crocodile on Wed 30th Oct 2013 07:38 UTC in reply to "Comment by Nelson"
crocodile
Member since:
2010-01-18


I called for a little less than 9 million and ~20% sequential growth in my analysis. Just something to keep in mind before the Always Wrong Club shows up.


What is the point of this when Nokia actually is loosing money by selling smartphones??

Nokia 2 years ago had ~33% of phone market and now it has ~3.3%. Clearly this is a failure for NOKIA and a sequential growth means nothing when one has a very small percentage of the phone market!

For every small company(and small "fishes") it is very easy to show sequential growth and this makes the sequential growth meaningless.

Reply Parent Score: 4