Linked by Thom Holwerda on Thu 18th Apr 2013 11:21 UTC
PDAs, Cellphones, Wireless Nokia has posted its quarterly results for the first quarter of 2013, and just like the quarters that came before, there's not a whole lot of good news in there. The rise in Lumia sales still can't even dream of making up for the sales drop in Symbian phones, and when broken down in versions, the sales figures for Windows Phone 8 Lumias in particular are very disappointing. In North America, Nokia is getting slaughtered.
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Size matters
by wigry on Thu 18th Apr 2013 13:28 UTC
Member since:

When Symbian was king, Nokia was a big behemoth so they needed those millinos devices to be sold to keep themselves running. Now Nokia is just a small show somwhere in the countryside of Finland and they are therefore more healthy than ever with much smaller WP sales.

So total amount of phones sold dropped massively but the size of Nokia has dropped more. So from the income/expenses point of view the situation is OK.

Reply Score: 3

RE: Size matters
by Nelson on Thu 18th Apr 2013 13:34 in reply to "Size matters"
Nelson Member since:

Exactly this, also the Average Selling Price of their smart devices has risen on Lumia sales, which partially offsets the drop in volume from Symbian.

Reply Parent Score: 3

RE[2]: Size matters
by tylerdurden on Thu 18th Apr 2013 16:48 in reply to "RE: Size matters"
tylerdurden Member since:

... however Nokia profit margins have plummeted, which means that even though they may be selling more expensive products, they still ain't making that much money off them.

And that is ignoring the fact that their net sales figures are down across the board, with some exceptions, so they are selling less stuff at the end of the day.

They do have some products that may sell well in developing markets, so that may bring some relief to Nokia soon though. But there is also the issue that their competition ain't sitting still either...

Reply Parent Score: 3

RE: Size matters
by cdude on Thu 18th Apr 2013 14:19 in reply to "Size matters"
cdude Member since:

If your company falls and shrinks that fast while explicit shrinking talent away then you are left with those who may not able to find a new, better place to work at.

During past 2 years whenever we read Nokia fires another bunch of people who did they fire? Where did they decrease? Not at management level, not marketing, not at lawyers. Production and R&D! That gives you a water-head company with 20 levels of management and nobody left below for execution. Good luck with that when being forced to produce something again rather then only repackage, market and resell what comes out of Redmond.

Even hardware-expertise is lost. That's why Lumia is still Lanku, why Pureview was lost, why qwerty was lost.

What stays is the name and a believe Nokia is still the same Nokia like before.

Edited 2013-04-18 14:32 UTC

Reply Parent Score: 2

RE[2]: Size matters
by GDXN on Thu 18th Apr 2013 16:44 in reply to "RE: Size matters"
GDXN Member since:

The worst is that the Nokia problem was a management problem.

If Nokia had decided to go with Android, the had the possibility to negotiate a very strong position with Google, basically they had the possibility to negotiate to only incorporate the Play market without any other Google sanctioned apps having a true possibility for differentiation with other manufacturers.

Other possibility and the best for Nokia in my view was to split in two phone companies. A high quality business and government oriented company maintaining the Nokia name, with a strategy to unify S40 and Symbian in scalable smart featured phone platform and continuing pushing Meego to the high end market, all in a quasi unified QT development platform with some exclusive Meego extensions, only manufactured in Europe. And a second company more consumer oriented, that make phones in 3 platform, a common smart featured phone platform with the Nokia brand, Android and Windows but with the possibility to incorporate Meego depending on the market situation. This second company manufactured in any part of the world, pushing its phone strategy from low end to consumer high end.

Reply Parent Score: 0

RE: Size matters
by bnolsen on Thu 18th Apr 2013 16:28 in reply to "Size matters"
bnolsen Member since:

profitability keeps the doors open.

It's just a shame that during the fastest growth market in history nokia went from having the largest share to having almost none of it.

That's absolutely historic and I'm sure business textbooks will use nokia's collapse as a case study on business failure for many years to come.

Nokia's stupidest mistake was to bet it all exclusively on one single dinosaur vendor instead of nimbly keeping their options open. If they would have even kept their fingers in android they could still have a healthy marketshare and definitely better leverage against microsoft.

HTC, Samsung, LG, Sony all were able to adjust to the market because they kept their options open.

Edited 2013-04-18 16:30 UTC

Reply Parent Score: 1

RE[2]: Size matters
by zima on Tue 23rd Apr 2013 21:18 in reply to "RE: Size matters"
zima Member since:

HTC, Samsung, LG, Sony all were able to adjust to the market because they kept their options open.

They all do rather poorly except for Samsung...

Reply Parent Score: 2