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.

Thread beginning with comment 575797
To view parent comment, click here.
To read all comments associated with this story, please click here.
RE[4]: Comment by Nelson
by _cynic_ on Wed 30th Oct 2013 11:42 UTC 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