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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Never go against the market!
by PieterGen on Wed 30th Oct 2013 15:43 UTC
Member since:

Even if you are right, it is not wise to go against the market.

BlackBerry's CEO Mike Lazaris in 2008: "The most exciting mobile trend is full Qwerty keyboards. I'm sorry, it really is." Let's assume that Qwerty keyboards ARE better for text input - even then it's stupid because the market clearly wanted full touch screens. Don't be smarter than the market.....

Microsoft's Steve Ballmer legendary "There's no chance that the iPhone is going to get any significant market share. No chance." Wrong! Look at the market!

Nokia's move to Windows: "People want an alternative for Android and iOS". Why not go with the strongest grower on the market (Android)? Look at the reviews: "Nokia has great hardware, but you'll have to live with WindowsPhone......"

Let's compare it to automobiles. Say Honda was in trouble, because people now bought electric cars from companies like Tesla. The smart move for Honda would be to go with the flow and build an electric car, of course! And certainly not make an expertimental hydrogen car, "because people need a 3rd choice, next to fossil fuels and electric" And yet this is what Nokia did.....

Edited 2013-10-30 15:44 UTC

Reply Score: 2

zima Member since:

And certainly not make an expertimental hydrogen car, "because people need a 3rd choice, next to fossil fuels and electric"

Actually, current hydrogen production comes from fossil fuels...

Reply Parent Score: 2