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[3]: Comment by Nelson
by Nelson on Wed 30th Oct 2013 10:27 UTC in reply to "RE[2]: Comment by Nelson"
Nelson
Member since:
2005-11-29

I think Nokia bottomed out a year ago, considering since then they've posted shipment increases every quarter.

But its a fact free zone when the Always Wrong Club is involved.

Reply Parent Score: 3

RE[4]: Comment by Nelson
by _cynic_ on Wed 30th Oct 2013 11:42 in reply to "RE[3]: Comment by Nelson"
_cynic_ Member since:
2012-04-18

LOL, it's always funny reading your crap.

So everything in Nokia is making profits, except smartphones...

Microsoft is buying the 118mi losing division? Make that 268mi. Let's not forget the MS quarterly gift.

Another thing people forgot Nokia smartphones ASP have reached a new record low of 196USD! Around half the global market average.

Reply Parent Score: 1

RE[5]: Comment by Nelson
by Nelson on Wed 30th Oct 2013 11:55 in reply to "RE[4]: Comment by Nelson"
Nelson Member since:
2005-11-29

And what does a loss matter to a company with the size and resources that Microsoft has?

They are the most stubborn and tenacious competitor on the planet. D&S is dangerously close to break even.

A loss posting division with rapidly accelerating losses and deteriorating unit sales is cause for concern. Not one with increasing unit sales, decreasing expenses, and an improving ecosystem.

You miss the forest for the trees, but my post is the funny one...riight.

Reply Parent Score: 3

RE[4]: Comment by Nelson
by tylerdurden on Wed 30th Oct 2013 18:03 in reply to "RE[3]: Comment by Nelson"
tylerdurden Member since:
2009-03-17

I think Nokia bottomed out a year ago, considering since then they've posted shipment increases every quarter.


LOL, did you just provide an example for my point?

Even with those increases, Nokia's current WP line moved only 60% as many units this year as Symbian was selling 3 years ago. Heck,WP is selling as many units for Nokia now as Symbian did in 07. Worse still, Nokia's shipment numbers in the smartphone space have remained pretty much flat during the past 3 years. So basically Nokia experienced a "lost" half a decade... in the market segment which has experienced the highest growth rate during that same time period. And that is even after 3 years of full effort and massive cash inputs.

Suddenly, when actual context is provided, those selective "growth" numbers you croon about don't look that impressive.


But its a fact free zone when the Always Wrong Club is involved.


... but enough about yourself.

Reply Parent Score: 3

RE[5]: Comment by Nelson
by Nelson on Wed 30th Oct 2013 18:12 in reply to "RE[4]: Comment by Nelson"
Nelson Member since:
2005-11-29

That's great and all if you're trying to show that Nokia once sold a lot of phones. I think everybody is aware of that.

The thing to note is how have they done since then and how are they doing now. The answer is not too shabby given the increases since last year.

You're a smart guy though, misguided, silly, but smart so I don't think that you don't know this. You just for some reason unbeknownst to me continue to play dumb.

I don't think its reasonable to have expected Nokia to have growth rates and volume shipments out of step with basically every OEM except Samsung and Apple simply because they once did. It isn't 2007 anymore (for real, check your calendar), so obviously market conditions then don't apply.

So if by context you mean red herring volume shipments completely unrelated to their current strategy, then yes ill grant you that.

Reply Parent Score: 2

RE[5]: Comment by Nelson
by zima on Tue 5th Nov 2013 16:39 in reply to "RE[4]: Comment by Nelson"
zima Member since:
2005-07-06

Nokia's current WP line moved only 60% as many units this year as Symbian was selling 3 years ago. Heck,WP is selling as many units for Nokia now as Symbian did in 07. Worse still, Nokia's shipment numbers in the smartphone space have remained pretty much flat during the past 3 years.

Only problem with Symbian handsets - they weren't really used as smartphones.

Reply Parent Score: 2