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 JAlexoid on Thu 31st Oct 2013 01:12 UTC in reply to "RE[2]: Comment by Nelson"
JAlexoid
Member since:
2009-05-19

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

RE[4]: Comment by Nelson
by Nelson on Thu 31st Oct 2013 01:31 in reply to "RE[3]: Comment by Nelson"
Nelson Member since:
2005-11-29

I'm speaking about Nokia as a whole in my analysis. As a whole they're doing just fine, and they didn't die for precisely the reasons I said they wouldn't a year ago (seriously, go and check the thread).

And D&S is also looking up, but they are two separate observations.

NSN has little more than a casual relation to D&S in that its strong profits (and Nokia's reduced operating expenses) keep the company afloat and allow investment into D&S.

I think you jumped the gun a little bit on this and seem to be unfairly trying to downplay NSN and HERE because you think I'm using them to prop up D&S.

Reply Parent Score: 3