Nokia reports a decline in Q2 operating earnings
Sales for HERE Maps rose 2% for the quarter, year-over-year, excluding currency changes. The company sold licenses for the embedded navigation system in 3.3 million new vehicles during the second quarter of 2014, up from the 2.7 million vehicles it sold licenses to in the same quarter last year.
Nokia Technologies had a great second quarter of 2014, compared to the first quarter. That took place because of the purchase of Nokia Devices and Services by Microsoft. The latter became a big licensee of Nokia's intellectual property.
At the end of the quarter, Nokia had net cash of 6.5 billion EUR ($8.7 billion USD) compared to 2.1 billion EUR ($2.8 billion USD) at the end of the first quarter of the year. The proceeds from the sale to Microsoft generated 4.8 billion EUR ($6.45 billion USD) in cash for the second quarter.
In Nokia Networks, our unique operating model has allowed us to deliver strong profitability while improving our topline trend. Maintaining this balance will remain a clear priority in the second half of the year, when we expect Networks to return to year-on-year growth. Our expectations for the full year 2014 have improved and we now expect full year underlying profitability for Networks to be at or slightly above our long term target range of 5 to 10 percent.
HERE demonstrated good year-on-year growth in its automotive business, and we continue to invest to expand in this area, as well as in the enterprise and consumer markets. The licensing and innovation engine of Nokia Technologies remains very much on track. We see opportunities to expand this business with both new and existing licensees, and the Technologies team continues to increase its industry-leading patent portfolio.
This performance, along with the many conversations I have had with customers, partners, employees and others in my first quarter as CEO, gives me a high degree of confidence about our future."-Rajeev Suri, President and CEO, Nokia
1. nvrhde (Posts: 77; Member since: 10 Nov 2012)
What ever, I should worry about my finance.
Ya I just came here to say that.
4. sriuslywtf (Posts: 277; Member since: 09 Jul 2013)
Nokia! Play dead! Don't provide earnings for Microsoft!
Then Microsoft will now abandon you due to non profit return.
Then resurrect yourself as the new NOKIA without FcukELOP and choose a better CEO this time.
Become a phoenix! Rise from the dead! Be the dominant that you once were.
I miss the old NOKIA.. No Nokia by Microsoft BS
7. Liveitup (Posts: 1571; Member since: 07 Jan 2014)
Many of you with your iOS/ Android worshipping helped in damaging the old Nokia to begin with, your Android/ iOS worshipping helped destroy Symbian before Windows Phone was even in the picture, for Android and iOS to get popular others like Nokia and BB had to lose. Without Microsoft Nokia wouldn't even exist as long as they have, but another day another boneheaded comment when you actually sit back and look at the facts.
Many hate on MS because of ignorance and just cause its the popular thing to do, many know it has great products so much so it redefined the UI industry at first everyone hated Metro until Android and iOS went flat, safe to say iOS/ Android many OEM skins like HTC one etc are mimicking WP experience.
Lumias are very good devices, industry leading devices, many of the same Nokia engineering teams are working out of Finland with more money at their disposal to create even better products, so what are you quacking on about, mobile and cloud are Microsoft future, shares have grown faster than Apple and Google so far this year for a good reason. Say what you want but tens of Millions want the Nokia by Microsoft BS cause for them its better than that Google/ iOS BS.
10. WahyuWisnu (Posts: 1001; Member since: 29 May 2014)
I wonder what will you said 2 years from now. It seems to me that Nadella will wind down WP little by little, and Elop will leave for personal reason after 3-4 quarter, then Nadella will shut down your favorite WP OS.
14. AfterShock (Posts: 2955; Member since: 02 Nov 2012)
He is posting a valid retro question.
Now, Dark, is this the respecting others opinions you were talking about?
16. sriuslywtf (Posts: 277; Member since: 09 Jul 2013)
@Liveitup, Are you Stephen Elop?
Talk about ignorance.. We are following nokias step from day one and we knew the mistakes it did under Elops ruling.
NOKIA HAS THE OPTION TO NOT JUST FOCUS ON WP.
Look at Samsung and HTC.. they are known for android yet they have WP too..
And.. NOKIA was bought dirt cheap by whom? Microsoft ofc..
Dont be blind.. You are the true ignorant here.
8. akki20892 (Posts: 3652; Member since: 04 Feb 2013)
In 2016 I hope we will see New Nokia......Nokia should pick Android and make high end Nokia android. Nokia N10 powered by Android.
17. marcski07 (Posts: 548; Member since: 25 Apr 2014)
I would love if they make their own os that can compete with android, less complicated. easily manageable, nokia was recognized not by just hardware but because also of its user friendly interface. that's why I avoid android, up until now, but this leave me no choice but to buy android for my next upgrade i don't want WP, tho they have great UI, still not yet mature, and i love customizing my handset, only android offers that, and iOS is so damn restrictive, + the fact it is expensive too...
18. WahyuWisnu (Posts: 1001; Member since: 29 May 2014)
There's a lot of skin for android, you can even have Jola (Nokia N9) skin, or WP skin for android.
19. epdm2be (Posts: 185; Member since: 20 Apr 2012)
They HAD THAT. Symbian!
And it had some advantages too. Like a full user-controlled multitasking, complete file-manager, call-recording consistently build in at great quality and volume, small footprint, relative fast (especially considering Nokia's use of modest cpu/gpu), build in internet (VOIP) calling, fantastic offline navigation app, vpn, great musicplayer with cover art, cloud and local syncing, support for nowadays exotic hardware like FM-transmitter and STILL the best camera-module ever produced on a smartphone (Nokia 808Pureview) etc...
20. marcski07 (Posts: 548; Member since: 25 Apr 2014)
yup, symbian, i miss the fact you can create easily your own themes change the icons with a picture you want. and many more. symbian was a very good os, they just fell short on applications, and web browsing, they didn't develop too much their OS they are too complaisant. and elop killed the meego/harmattan, it has a potential to mature, if they just have gone android with their skin.. we will still have the epic start up tone, and the slogan connecting people with the logo of a two hands reaching towards each other on start up... :D hope in 2016, they still have that...
21. epdm2be (Posts: 185; Member since: 20 Apr 2012)
"they just fell short on applications, and web browsing"
Eh? Are you insane? At the time when Symbian was around there were tons of games and apps. I have seen all the big titles from that era on Symbian (Angry birds, Asphalt5/6HD, Spiderman, Transformers, fruit ninja, Avatar, Galaxy on fire etc...).
"they didn't develop too much their OS they are too complaisant."
Again where have you been the last few years? Symbian got MORE updates than many competing OS's. From Symbian S^3 upto Symbian Belle FP2. You seem to forget that it takes time to develop software and OS's. There was Opera as alternative webbrowser. Not to mention Nokia's browser was NOT bad. Which I've proven on youtube myself. It took Jolla over a year to get Sailfish OS which still can't do half of what Symbian can and only recently become out of beta (but in reality still is very much beta).
Stop parrotting that anti-nokia propaganda. Elop indeed prematurely killed Symbian and Harmattan. The latter started to get very good reviews and was liked by both the anti-Nokia and pro-Nokia crowd. In fact the N9 still can do more than a 2014 Jolla phone. Which shows how far advanced Nokia products realy were. I still use my Nokia 808PV as my main driver.
As for using Android. I've written countless times. Why should Nokia use Android when they had a much better linux-based OS (Harmattan)?
Today what all the recent crap that happened it's all water under the bridge. Nokia won't come back in 2016 with phones. But if they're smart enough they could licence the future stuff from their R&D departement and we might see more Nokia influenced technology into other handsets (even inferior Android ones).
22. epdm2be (Posts: 185; Member since: 20 Apr 2012)
Sure Nokia took their time. But you also forgot that Nokia had many platforms in development in their time. They developped the devices itself, the OS's used AND many apps including webbrowsers, emailclients, call-recorders, calculators, dialers with or without VOIP, PC syncing software, Mac-syncing software, navigation apps, camera-apps,camera hardware, filemanagers etc... to go with these devices. Plus they also did other projects like the Graphene development project. Apple only has one OS and one set of apps, just like Google and WP. They don't contribute on long term improvement projects like Nokia did. So they can release new stuff much quicker to make that quick buck. Driven by greed.
Why are we so impacient? Why are we so ignorant with regards to gadgets? Why didn't we give the "good" manufacturors the time they need to make proper stuff?
This is going exactly the way of VHS-videotape. The crap survives and the good tech dies.
5. joey_sfb (Posts: 3221; Member since: 29 Mar 2012)
I would have buy a good Nokia Android phone instead of Samsung.
Too bad Nokia Board believe the lies from the viper Stephen Elop; Nokia best interest my foot!
9. Jabarkas (Posts: 20; Member since: 05 Jul 2012)
Nokia got money by selling its internal organs. Thats always a wise choice.
12. DontHateOnS60 (Posts: 863; Member since: 20 Apr 2009)
ARE YOU KIDDING ME WITH THE TITLE OF THIS ARTICLE??
Seriously, as of 12:55 EST NOK is up 0.59 to $8.27/share and the title of your article is Nokia reports decline??
Let me give you a little advice when writing articles related to financial news. Don't write them anymore. The news in the financial industry right now is all positive because of how strong Nokia looks WITHOUT the handset division.
Better title for your article would be "New Nokia reports loss but future looks bright without handset division".