Linked by Thom Holwerda on Thu 23rd Jan 2014 11:54 UTC
PDAs, Cellphones, Wireless

Nokia has just posted its results for the fourth quarter of 2013 - this is the last set of quarterly results which include the devices division, which has been sold to Microsoft. The parts that remain at Nokia are doing relatively well, but the holiday quarter for Lumia was a letdown.

Exactly how much of a letdown we can't say, since Nokia has - curiously, but tellingly - stopped reporting Lumia sales (update: Nokia has confirmed it sold 8.2 million Lumias). However, they do state that Lumia sales in the fourth (holiday) quarter were down from the third quarter, but up from the year-ago quarter, meaning they sold anywhere between 4.4 and 8.8 million Lumias during the holiday quarter of 2013. Tweakers' Arnoud Wokke has done the math, and concludes Nokia sold between 7.55 and 7.98 million Lumias (update: Nokia has confirmed it sold 8.2 million Lumias). Average selling price dropped again, most likely due to the popularity of the low-end 520. This gives Nokia a smartphone market share of about 2-3%.

All in all, the devices division, with its crashing Asha sales and struggling Lumia sales, was a clear stone around Nokia's neck, kept somewhat afloat by cash injections from Microsoft. However, those injections apparently weren't enough, and by now, we can conclude that Microsoft was effectively forced to step in and buy Nokia's devices division - lest someone else do it.

With this being the last quarter in which Nokia reports on its devices division, an era has come to an end. Now it's up to Microsoft to try and see if they can make something out of the Lumia brand - however, without the Nokia name, that's going to be a very tough sell.

Just ask the Surface department.

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RE: Interesting
by Nelson on Thu 23rd Jan 2014 15:16 UTC in reply to "Interesting"
Nelson
Member since:
2005-11-29

I'd be much more forgiving of a Q3 drop, but flat growth during Q4 with seasonality's wind at your back is unacceptable. They missed an opportunity.

My guess is that the Microsoft purchase threw a wrench in all this. For example VZW wouldn't negotiate the Lumia flagship until after the deal closed. They prefered to deal with Microsoft instead.

Anecdotally, I saw a lot less advertising post shareholder agreement, I'm not sure about the legality once the purchase was shareholder approved but there seems to have been a huge drop off in marketing effort.

Can't say I blame Nokia too much all things considered, its Microsoft's problem now.

Reply Parent Score: 5

RE[2]: Interesting
by Thom_Holwerda on Thu 23rd Jan 2014 15:21 in reply to "RE: Interesting"
Thom_Holwerda Member since:
2005-06-29

Anecdotally, I saw a lot less advertising post shareholder agreement, I'm not sure about the legality once the purchase was shareholder approved but there seems to have been a huge drop off in marketing effort.


Weird, as I only started seeing Nokia advertisements AFTER the deal. Probably just coincidence, I'd say.

Reply Parent Score: 2

RE[3]: Interesting
by Morgan on Thu 23rd Jan 2014 23:22 in reply to "RE[2]: Interesting"
Morgan Member since:
2005-06-29

Coincidence, or maybe a regional thing. It seems like I've seen more Lumia advertising in brick-and-mortar stores in the past few months than I had before. And T-Mobile is really pushing the Lumia 521 around these parts.

Reply Parent Score: 3

RE[2]: Interesting
by Deviate_X on Thu 23rd Jan 2014 15:57 in reply to "RE: Interesting"
Deviate_X Member since:
2005-07-11

Well true, but the point is that things dip, especially as you point out... the mobile division is currently in no-mans land.

Reply Parent Score: 2

RE[2]: Interesting
by dsmogor on Thu 23rd Jan 2014 21:20 in reply to "RE: Interesting"
dsmogor Member since:
2005-09-01

Hollyday drop might be related to the fact that maybe Lumia is not perceived as premium, and thus not chosen deliberately in gift giving context. It gets rebound in when normal carrier replacement cycle takes over as a rational choice for value sensitive customers.

Edited 2014-01-23 21:21 UTC

Reply Parent Score: 1