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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first party
by TbouncerT on Thu 31st Oct 2013 17:30 UTC
Member since:

I like to look at it like WP has a proprietary maker now. (I know Nokia was basically that, but now it's internal with MS now). I can see this helping the WP market even more now. Just like Apple's iOS & iPhone. WP needed this to happen, MS needed to MAKE the phone on top of making the OS. Look at Xbox division and how well it is doing from version 1 to 2 (soon to be 3). Yeah, Surface isn't doing as well....yet (when they merge WP and RT, I think that'll make it a lot better). WP and Surface are showing improvements. In any case, it's nice to have options.

Reply Score: 2

RE: first party
by glarepate on Thu 31st Oct 2013 19:38 in reply to "first party"
glarepate Member since:

Yes, the market/sales for these phones is improving. What about retention of consumers to create an installed base?

Totally anecdotal and unsupported by any evidence that I have been able to discover. (I did look for info about installed base numbers and didn't find any. My google-fu is weak here!):

I saw a post on one the the Nokia stock boards saying that there are currently about 32 million Windows Phone handsets in service now. Nokia sold about 24 million Lumias so far this year. WP handsets have been available for just about 3 years now. How/why can the user base be that low (if that figure is correct)?

This makes it look like users are leaving the WP platform at a very large rate if Nokia can sell that many phones and the user base still be that small.

Anyone able to find numbers of phones with contracts? Because if this is true MSFT will have to brace for deficit spending on these phones for now and maybe indefinitely.

Reply Parent Score: 1