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[7]: Comment by Nelson
by glarepate on Thu 31st Oct 2013 20:03 UTC in reply to "RE[6]: Comment by Nelson"
Member since:

Don't need the BOM info to figure this out.

Look at the earnings report and the distribution of 52x handsets among all WP units:

Lumia sales up 19%. ASP dropped from €157 to €143 which is down 9.1% Selling more, getting less per unit average.

Adduplex shows that the 52x makes up 32.8% of all WP handsets, not just Nokias. So it wasn't recent price drops on older handsets that killed the ASP because they weren't selling a lot of the older, higher margin Lumias. But loads of 52x though.

Lower margin ; QED.

Reply Parent Score: 1

RE[8]: Comment by Nelson
by Nelson on Fri 1st Nov 2013 13:51 in reply to "RE[7]: Comment by Nelson"
Nelson Member since:

ASP has nothing to do with per device margins. What the fuck. Please exit this conversation.

QED is reserved for when a coherent point is made.

Reply Parent Score: 3

RE[9]: Comment by Nelson
by glarepate on Sat 2nd Nov 2013 14:56 in reply to "RE[8]: Comment by Nelson"
glarepate Member since:

Just thought you'd like to see what it's like to be on the receiving end of a stream of nonsense for a change since you are normally stuck on send. (-:

Reply Parent Score: 2