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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Lumia comments
by SonicMetalMan on Thu 23rd Jan 2014 19:34 UTC
SonicMetalMan
Member since:
2009-05-25

I have say that Nokia still makes a great handset, Windows or not. I purchased a couple of Lumia 521's for my wife and son to use with our T-mobile "uncarrier" plan and I have to say they are great cheap devices if you are not chained to the Google ecosystem. At $80 USD each they are a Hell of a lot better than any $100 android device I've ever seen. You would need to spend more than twice that for a Moto G to even get close to the same build quality.

I'm still an Android guy at heart but I do recognize that there can be a market for Nokia to occupy. Concede the mid-range market to Android and try to capture the low and ultra high-end and be happy with it.

Reply Score: 2

RE: Lumia comments
by chandler on Fri 24th Jan 2014 00:42 in reply to "Lumia comments"
chandler Member since:
2006-08-29

A Lumia 521 on T-Mobile is an incredibly rational choice that can save thousands of dollars compared to more popular choices like the iPhone 5S on Verizon.

And... this is exactly the problem. Nokia and Microsoft are offering a rational choice in a fundamentally irrational market. It can work well enough to scrape off the bottom end of the market, but you'll never make as much money as Apple by selling products that cost much less.

Right now the moneymakers in the market are the irrational choices and the shovelware phones that carriers are paid to promote to their customers. Making sense unfortunately just doesn't make dollars, only cents.

Reply Parent Score: 2

RE[2]: Lumia comments
by calden on Fri 24th Jan 2014 01:10 in reply to "RE: Lumia comments"
calden Member since:
2012-02-02

Good comment, what amazes me is when people pay so much for these premium phones when they'll only ever use a handfull of apps that are available by the way on cheaper phones like the Lumia 520 or 720. I finially broke down and bought a Nokia 1020 a few months back but I bought it unlocked, used from ricardo.ch, it was new, the user before me never even removed the plastic sreen protector. Ricardo is the Swiss equilivant of eBay. I haven't bought a phone on contract since 2001, unlocked and all paid up front is the only reasonable option, hence the reason why I almost always buy used.. People who buy iPhones, Lumias, Xperia's, whatever, on contract will always be better served just buying the thing outright. Cheaper contract, cheaper phone (you usually pay 400 - 600 dollars more in the end when you buy on contract) and no bloatware from the provider.

Reply Parent Score: 2

RE[2]: Lumia comments
by unclefester on Fri 24th Jan 2014 07:49 in reply to "RE: Lumia comments"
unclefester Member since:
2007-01-13

And... this is exactly the problem. Nokia and Microsoft are offering a rational choice in a fundamentally irrational market. It can work well enough to scrape off the bottom end of the market, but you'll never make as much money as Apple by selling products that cost much less


The reality is that in 2-3 years $100 prepaid phones will be good enough to satisfy >90% of users. That is when the WP8 strategy will finally succeed and Apple and Samsung will really suffer.

Reply Parent Score: 3