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 575807
To read all comments associated with this story, please click here.
RE[7]: Comment by Nelson
by Nelson on Wed 30th Oct 2013 19:33 UTC in reply to "RE[6]: Comment by Nelson"
Member since:

Like I mentioned, it depends on if you think Nokia has some out of the ordinary trait that would make gargantuan shipment increases possible. The amount of volume they'd need to both offset and then improve on Symbian's past volumes are astronomical.

No OEM is currently exhibiting growth patterns like that save for the market leaders. Unless you expected Windows Phone to catapult them overnight to market leadership (insane if you thought it was possible from either WP or Android), Nokia's current growth trajectory is fantastic.

They're growing faster than other Android OEMs at comparable volumes and seeing a stabilizing financial situation.

You can call it PR, or Astroturfing or whatever uncreative name you toss out next, but this is exactly what I've been saying would happen. Apparently this quarter I was especially on target.

The Always Wrong Club moniker may annoy you, but its an accurate depiction of some on this website.

Reply Parent Score: 3