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: Lumia comments
by chandler on Fri 24th Jan 2014 00:42 UTC 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

RE[3]: Lumia comments
by cdude on Fri 24th Jan 2014 11:14 in reply to "RE[2]: Lumia comments"
cdude Member since:
2008-09-21

Reality is that in most parts of this world below $100 pre-payed smartphones are standard since a while now and its all Android. The carrier-control, limited device-choice and high device- and call/data-prices in US, and also to a certain extend here in europe, is non-standard insanity.

Edited 2014-01-24 11:15 UTC

Reply Parent Score: 2

RE[3]: Lumia comments
by benytocamela on Tue 28th Jan 2014 18:49 in reply to "RE[2]: Lumia comments"
benytocamela Member since:
2013-05-16

Ironic use of the word "reality" to refer to events in the future, which have a low chance of actually happening considering Nokia loses money in those sub-$100 WP phones currently (aka actual "reality").

Reply Parent Score: 2