Linked by Thom Holwerda on Thu 10th Jan 2013 17:10 UTC
PDAs, Cellphones, Wireless Nokia has just sent out a few preliminary comments about the company's performance during the fourth quarter of 2012. Nokia's figures are a good indicator for how well Windows Phone 8 is doing, and, in all honesty, I'm not exactly blown away. Apparently, neither was Nokia itself, since the company decided to redefine their Asha phones from feature phone to smartphone to prop up their smartphone sales figures.
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WP8 has only been out since November
by Nelson on Thu 10th Jan 2013 18:15 UTC
Nelson
Member since:
2005-11-29

So this likely reflects a positive impact of the Lumia WP7 line up in recently launched markets.

Last I heard, the 610 was selling like crazy in some of the new markets, so this could be that result. I think its too early to judge WP8 sales given that Nokia is constrained by supply, and we haven't had a full quarter of WP8 sales.

Either way, the Asha number fiddling aside, let's analyze what Nokia has done here:

This is their second consecutive quarter of profitability and they've had a QoQ increase of 1.5 million Lumias. Asha numbers went from 6 million to 9.3 million, which is nothing to sneeze at.

I said it last time these numbers came out that Asha was Nokia's real white knight. If they keep showing sequential growth I can see Asha reversing a lot of their marketshare losses in their previously strong core markets.

Either way, this shows an alternative narrative to what many on OSNews would wish was happening. Nokia is rebounding. Slowly, but they're rebounding. The company is out of the critical part of the transition and has moved onto a path of upward growth.

Re: WP8 apps:
WP8 has only been out since November and the SDK has only been out for around that time. This is different from when Mango came out and the SDK had been out in some form since March of that year.

Besides that, the incentive isn't too great because:

A) WP7 devices are still selling and will continue selling. They have not been EOL'd. They are the low end component of Windows Phone.

B) It is easy to write a WP7 app and use runtime reflection API to integrate with the new Start Screen. Plus it will work with the 7.8 Start Screen.

C) Some apps don't really need the new functionality (Lockscreen, Wallet, some of the new Tile Templates, etc)

D) The market for WP7 for now is larger than the WP8 addressable market. This will change, but its a reality for now.

But I think that suggesting some sort of developer crisis within WP8 is ludicrous and unfounded. This is just a transitionary period.

If you look back at Mango it took a while for Mango apps to come out as well.

Reply Score: 1

Thom_Holwerda Member since:
2005-06-29

But I think that suggesting some sort of developer crisis within WP8 is ludicrous and unfounded.


I've noted that you have picked up the nasty discussion 'tactic' of twisting people's words into something more extreme in order to make it easier to posit counterpoints. I really wish you would stop this, because it's insipid and borders on flat-out lying.

I never said anything even remotely related to "developer crisis", so please don't put those words into my mouth.

Reply Parent Score: 4

Nelson Member since:
2005-11-29

Windows Phone 8 was released months ago, and yet many popular applications still haven't been updated to properly support it. It just isn't on developers' radars.


So what are you indicating by this? Its incredible how you have selective amnesia when it comes to an article you just wrote.

Reply Parent Score: 2

tylerdurden Member since:
2009-03-17

Welcome to Marketing 101. ;-)

I am actually surprised with Nokia's symbian numbers for 2012: almost 22 million units sold, with basically zero marketing push. Whereas they only managed to ship over 13 million WP devices, and that is with a media/astroturfing blitz.

The transition in just one year has been startling: in Q1, Nokia shipped almost 12 million "smart" phones (10 million symbian + 2 million WP devices). In Q4 they have managed barely over 6.5 million of the same category (2 million symbian + 4.5 million WP devices). So basically, Nokia managed to halve their shipments in the most profitable phone bracket. That is a catastrophic result under most reasonable metrics.


I would be interested in knowing the terms of the licensing agreement between Nokia and Microsoft. I seem to recall they were operating on flat fees, so I wonder if Nokia sold enough WP units to break even with regards to OS licensing costs.

Luckily for Nokia their stock price has gone up a bit in the past few weeks, so all is not lost.

Reply Parent Score: 9

gmlongo Member since:
2005-07-07

Actually, you did insinuate as such with the following statements quoted directly from you article:

"Windows Phone 8 was released months ago, and yet many popular applications still haven't been updated to properly support it. It just isn't on developers' radars."

Reply Parent Score: 1