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.

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RE[4]: Comment by Nelson
by Nelson on Tue 29th Oct 2013 20:33 UTC in reply to "RE[3]: Comment by Nelson"
Nelson
Member since:
2005-11-29

Uh, Nokia is still alive. Feel free to keep making things up though.

Reply Parent Score: 2

RE[5]: Comment by Nelson
by No it isnt on Tue 29th Oct 2013 21:33 in reply to "RE[4]: Comment by Nelson"
No it isnt Member since:
2005-11-14

Yes, yes. Not as a handset maker, though. Like I said: you're technically right.

Reply Parent Score: 4

RE[6]: Comment by Nelson
by Nelson on Tue 29th Oct 2013 21:41 in reply to "RE[5]: Comment by Nelson"
Nelson Member since:
2005-11-29

And NSN is now solely a mobile broadband solution, but that isn't "dead".

D&S, the 32,000 employees, and 8,000 patents got transferred to Microsoft for $7 billion dollars. How is moving to a company with a market cap of $300 billion dollars dying?

Did Skype die? Did Yammer die? I think we can say that Nokia is no longer in the phone business, and we can say that Microsoft is in the phone business. But we cannot say that Nokia or any part of it died.

If Nokia had laid off the 32,000 employees and shuttered its phone division, closed its plants, and thrown in the white flag then perhaps -- but that's not at all what happened.

Edited 2013-10-29 21:41 UTC

Reply Parent Score: 3