Linked by Thom Holwerda on Thu 14th Jun 2012 15:15 UTC, submitted by Jos
PDAs, Cellphones, Wireless And the burning platform is still, uhm, burning. "Chief Executive Stephen Elop is placing hopes of a turnaround on a new range of smartphones called Lumia, which use largely untried Microsoft software. But Lumia sales have so far been slow, disappointing investors." It's a shame to see a once proud company in such a downward spiral, but alas, it's the way of business. If you get complacent - as Nokia had gotten - you will fail.
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RE[3]: Its a restructuring
by joekiser on Thu 14th Jun 2012 23:44 UTC in reply to "RE[2]: Its a restructuring"
joekiser
Member since:
2005-06-30

I don't believe Lumias are sold at a loss, I've never heard of them being sold at a loss.


That's because they aren't. There was a breakdown in the WSJ last week about the profit margin on the Lumia 900 versus the iPhone 4S, complete with a price breakdown of every component of the phone. I don't remember the exact figures, but Nokia is profiting in close to $300 on each Lumia sold; Apple pulls in over $400.

The Nokia has been *very* successful in the US at planting the seeds for a Lumia brand. It's not there yet; less than half the market is even accessible right now due to Lumia's GSM-only nature. But Lumia is certainly doing more stateside than dead-end Symbian was doing the past few years.

Reply Parent Score: 2

RE[4]: Its a restructuring
by tanzam75 on Fri 15th Jun 2012 04:24 in reply to "RE[3]: Its a restructuring"
tanzam75 Member since:
2011-05-19


That's because they aren't. There was a breakdown in the WSJ last week about the profit margin on the Lumia 900 versus the iPhone 4S, complete with a price breakdown of every component of the phone. I don't remember the exact figures, but Nokia is profiting in close to $300 on each Lumia sold; Apple pulls in over $400.


You mean this infographic: http://www.phonearena.com/news/WSJ-infographic-of-the-Lumia-900-and...

Nokia is earning $241 per Lumia 900, versus Appleā€™s $459 per iPhone 4S. For Apple, that's a gross margin of nearly 70%.

Of course, this is due largely to the substantially higher carrier subsidy that Apple gets. Apple has a market-dominant position, and is not afraid to throw its weight around. Most of its profits come directly from the carrier's pocket.

Reply Parent Score: 3