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 575848
To read all comments associated with this story, please click here.
RE[5]: Comment by Nelson
by crocodile on Thu 31st Oct 2013 13:55 UTC in reply to "RE[4]: Comment by Nelson"
crocodile
Member since:
2010-01-18

Nokia is losing money, but dramatically less money than say, a year ago. That is gradually improving as its device volumes improve and as its restructuring efforts taper off, as I said they would.
...


That is the most important point! Nokia is loosing money while selling phones! The goal of a business is to make money! This means that selling phones is not a good bussines for Nokia. It is as simple as that!

Everything else like future income estimates, guesses, and future projections are just that and nothing else!

Reply Parent Score: 1