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: Comment by Nelson
by JAlexoid on Wed 30th Oct 2013 00:30 UTC in reply to "Comment by Nelson"
Member since:

A few important things to take away here: NSN and HERE continue to perform strongly.

And a more important note to make is that NSN and HERE are largely irrelevant to you general narrative of WP growth.

We also were the ones that will go "told you so" with "it's the low margin devices".
But it's good that you are focusing on the positive.

Reply Parent Score: 6

RE[2]: Comment by Nelson
by Nelson on Wed 30th Oct 2013 01:21 in reply to "RE: Comment by Nelson"
Nelson Member since:

My narrative of WP growth? This is yet another quarter of double digit unit volume growth. They're at double digit share in many countries. The ecosystem has grown considerably. They're #2 in many regions already.

The hype is real.

Reply Parent Score: 3

RE[3]: Comment by Nelson
by JAlexoid on Thu 31st Oct 2013 01:12 in reply to "RE[2]: Comment by Nelson"
JAlexoid Member since:

Yes, your narrative is all about WP. NSN's profits has jack-s***t to do with WP.

"narrative is any account of connected events, presented to a reader or listener in a sequence of written or spoken words"

Reply Parent Score: 2