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.