Nokia sold 4.4 million Lumia in Q4 2012, beats outlook and shares surge pre-market
Nokia was happy to announce both its Lumia lineup of Windows Phone devices and its dumbphones sold better than expected with Nokia Lumia sales amounting to 4.4 million. Overall, smartphone sales stood at 6.6 million.
The company also had lower than expected operating expenses, and has achieved underlying profitability in Q4 2012.
This is some good news for the struggling Finnish phone maker, but the real question is whether Nokia can keep on growing. At the same time, the company warned that it forecasts a weaker Q1 2013 due to seasonality.
Interestingly enough, while Elop and Nokia continue to speak about Asha phones as smartphones (when they are clearly not), its accountants are more realistic and put the Asha lineup in Nokia’s feature phone statistics.
Here is how Nokia’s Q4 2012 sales break down:
- Mobile phones (read, feature phones): 79.6 million
- of which Asha full-touch phones: 9.3 million
- Smart devices: 6.6 million
- of which Lumia Windows Phones: 4.4 million
Nokia provides preliminary financial information for Q4 2012 and preliminary outlook for Q1 2013
Stock exchange release
January 10, 2013 at 15:00 (CET+1)
Espoo, Finland - Nokia today provided preliminary information on certain aspects of its fourth quarter 2012 financial performance and also provided preliminary information on its outlook for the first quarter 2013.
Nokia now estimates that Devices & Services has exceeded expectations and achieved underlying profitability in the fourth quarter 2012.
- Mobile Phones business unit and Lumia portfolio delivered better than expected results; and
- Operating expenses were lower than expected.
- Devices & Services non-IFRS operating margin for the fourth quarter 2012 now expected to be between break even and positive 2 percent.
Seasonality and competitive environment are expected to have a negative impact on the first quarter 2013 underlying profitability for Devices & Services, compared to the fourth quarter 2012.
Nokia also estimates that Nokia Siemens Networks has exceeded expectations for the fourth quarter 2012, delivering record underlying profits and a third consecutive quarter of underlying profitability.
- Strong performance in higher margin product categories and geographic regions; and
- Better than expected cost management.
- Nokia Siemens Networks non-IFRS operating margin for the fourth quarter 2012 now expected to be between 13 and 15 percent.
Seasonality is expected to have a negative impact on the first quarter 2013 underlying profitability for Nokia Siemens Networks, compared to the fourth quarter 2012.
Commenting on the preliminary Q4 financial information, Stephen Elop, Nokia CEO, said:
"We are pleased that Q4 2012 was a solid quarter where we exceeded expectations and delivered underlying profitability in Devices & Services and record underlying profitability in Nokia Siemens Networks. We focused on our priorities and as a result we sold a total of 14 million Asha smartphones and Lumia smartphones while managing our costs efficiently, and Nokia Siemens Networks delivered yet another very good quarter."
Preliminary financial information for the fourth quarter 2012:
Nokia currently estimates that Devices & Services net sales in the fourth quarter 2012 were approximately EUR 3.9 billion, with total device volumes of 86.3 million units.
- Mobile Phones net sales of approximately EUR 2.5 billion, with total volumes of 79.6 million units of which 9.3 million units were Asha full touch smartphones.
- Smart Devices net sales of approximately EUR 1.2 billion, with total volumes of 6.6 million units of which 4.4 million units were Nokia Lumia smartphones.
- Total smartphone volumes of 15.9 million units composed of 9.3 million Asha full touch smartphones, 4.4 million Lumia smartphones and 2.2 million Symbian smartphones.
- Devices & Services Other net sales of approximately EUR 0.2 billion, including a positive impact from non-recurring IPR income of approximately EUR 50 million.
Nokia currently estimates that Devices & Services non-IFRS operating margin for the fourth quarter 2012 was between break even and positive 2 percent, which compares to the previous outlook of approximately negative 6 percent, plus or minus four percentage points. Devices & Services non-IFRS operating margin includes a positive impact from non-recurring IPR income of approximately EUR 50 million.
During the fourth quarter 2012, multiple factors positively affected Nokia's Devices & Services businesses to a greater extent than previously expected. Preliminary information indicates that the main factors include:
- Within the Devices & Services business, better than expected financial performance in the Mobile Phones business unit and Lumia smartphones. In addition, Devices & Services recognized non-recurring IPR income of approximately EUR 50 million; and
- Lower than expected Devices & Services' operating expenses, partially due to greater than expected cost reductions under the restructuring program.
Nokia currently estimates that Location & Commerce net sales in the fourth quarter 2012 were approximately EUR 0.3 billion and the non-IFRS operating margin was between 13 and 15 percent.
Nokia and Nokia Siemens Networks currently estimates that Nokia Siemens Networks net sales in the fourth quarter 2012 were approximately EUR 4.0 billion and the non-IFRS operating margin was between 13 and 15 percent, which compares to the previous outlook of approximately positive 8 percent, plus or minus four percentage points. Nokia Siemens Networks non-IFRS operating margin includes a positive impact from non-recurring IPR income of approximately EUR 30 million.
During the fourth quarter 2012, multiple factors positively affected Nokia Siemens Networks' businesses to a greater extent than previously expected. Preliminary information indicates that the main factors include:
- More favorable product and regional mix in Nokia Siemens Networks. In addition, Nokia Siemens Networks recognized non-recurring IPR income of approximately EUR 30 million; and
- Better than expected improvement under Nokia Siemens Networks' restructuring program to reduce operating expenses and production overheads.
Preliminary outlook for the first quarter 2013:
Nokia expects its non-IFRS Devices & Services operating margin in the first quarter 2013 to be approximately negative 2 percent, plus or minus four percentage points. This outlook is based on Nokia's expectations regarding a number of factors, including:
- competitive industry dynamics continuing to negatively affect the Smart Devices and Mobile Phones business units;
- the first quarter being a seasonally weak quarter;
- consumer demand, particularly for our Lumia and Asha smartphones;
- continued ramp up for our new Lumia smartphones;
- expected cost reductions under Devices & Services' restructuring program; and
- the macroeconomic environment.
Nokia expects Location & Commerce non-IFRS operating margin in the first quarter 2013 to be negative due to lower recognized revenue from internal sales, which carry higher gross margin, and to a lesser extent by a negative mix shift within external sales.
Nokia and Nokia Siemens Networks expect Nokia Siemens Networks non-IFRS operating margin in the first quarter 2013 to be approximately positive 3 percent, plus or minus four percentage points. This outlook is based on Nokia Siemens Networks' expectations regarding a number of factors, including:
- competitive industry dynamics;
- the first quarter being a seasonally weak quarter;
- product and regional mix;
- expected continued improvement under Nokia Siemens Networks' restructuring program; and
- the macroeconomic environment.
20. MeoCao (unregistered) posted on 10 Jan 2013, 09:09 30
Great news for Nokia, innovation is always rewarded.
46. Nathan_ingx posted on 10 Jan 2013, 10:45 6
Good news indeed... But Nokia can't stop here...they need something to go against the 1080p monsters released in the CES, and they need to do it soon.
Suddenly, OIS is not that appealing as it used to be. 920's a great device, but the rate at which mobile phones grow with new exciting features is not giving anyone, anytime for rests and breaks. I hope Nokia does something surprising at the MWC.
56. rms.max posted on 10 Jan 2013, 12:14 4
agreed... so far i know more "pure " is coming...... :)
57. abhishek48 posted on 10 Jan 2013, 12:26 3
OK, but there numbers are nothing compared to samsung, apple
61. zippolite28 posted on 10 Jan 2013, 13:14 1
samsung have entered now and before they never had any like .. but to say the char now ....
63. zippolite28 posted on 10 Jan 2013, 13:16 6
whats soo special about samsoung other than android and amoled bro ....
71. abhishek48 posted on 10 Jan 2013, 14:54 1
It Exonys SOC and mali gpu, which beated crap out of qualcom last year, this year also Exonnys quad was netter than krat dual. no doubt kraot quad isbetter , but lumia has only krait dual.. which is less Exonys Quad
114. tashreef posted on 10 Jan 2013, 21:34 5
why u need a quad-core processors when u can't utilize them.... Just for Show OFF......
Only Android JB needs Quad-core to run smoothly....not WP8 .... they are customized to suck less power ....
127. joey_sfb posted on 11 Jan 2013, 05:17 0
Visit above link. 1080p Gaming most phone is only running at 7 - 15 fps.
I don't know about you, i am ready and i want more processing power now!!!!
128. joey_sfb posted on 11 Jan 2013, 05:28 0
Hit me with OpenGL ES 3.0
60. zippolite28 posted on 10 Jan 2013, 13:12 11
good luck nokia .... i dont hate u ... and ppl who hates are jealos of this .... its not about WP or android .... its about they r doing good ... lets be happy for that
72. TROLL (limited) 5 days ago posted on 10 Jan 2013, 14:54 0
It's not hate more like bashing Trolling on Nokia.
106. asseek posted on 10 Jan 2013, 20:36 2
so u do confess that all u do is bashing trolling on Nokia !!
107. chaoticrazor posted on 10 Jan 2013, 20:43 4
mate dont waste too much time on that kid
he will respond trying to justify his bashing by saying everyone does it etc all that bs
86. papss posted on 10 Jan 2013, 17:02 4
Hear you go again putting you very small opinion as a fact.... Mate
113. tashreef posted on 10 Jan 2013, 21:30 2
why u have 7 thumbs down...just for saying " Good Luck nokia"?
Bad Luck for haters.....
3. -box- posted on 10 Jan 2013, 08:02 22
Good job, Nokia!
I wonder how many more would have sold if the 920 weren't carrier exclusive in various countries, US and UK especially.
11. windroid posted on 10 Jan 2013, 08:35 12
They would sell much more if they had them. They were launched in a limited number of countries, only now they are starting to sell in some European countries.
14. jibraihimi posted on 10 Jan 2013, 08:50 9
Yes you are right, the sale of lumia's were hampered by limited availability, first of all they were not available in most countries, India saw the launch of lumia 920/820/620, today,china also saw the launch very late into December, and above this sale were also hampered by the low stocks in the markets where it was available........... But even though positive result shows that Nokia is taking baby steps to get back to their previous position............
24. PhoneArenaUser posted on 10 Jan 2013, 09:34 0
I don't know about situation in the other countries but, I'm from Europe and in my country Nokia Lumia 920 is available for conditionally long time now.
41. bbblader posted on 10 Jan 2013, 10:24 0
But in my country it doesn't even have a release date yet.
42. Mizmo posted on 10 Jan 2013, 10:27 0
Belgium, Romania, Luxembourg, Netherlands,...
had to buy mine from germany
64. PhoneArenaUser posted on 10 Jan 2013, 13:55 0
58. the_best (limited) 2 days ago posted on 10 Jan 2013, 12:37 0
you are clearly not from europe, because no one from europe ever say they are from europe.. its like saying you come from earth.. anyways good for nokia
62. PhoneArenaUser posted on 10 Jan 2013, 13:15 0
Yes, I'm from Europe - Lithuania.
Where are you from?
130. the_best (limited) 2 days ago posted on 11 Jan 2013, 19:19 0
hehe okay then, i guess its ok for you guys.. not wanting to be sovjet satellite state and all.. im from sweden, for us europe is obvious and not really relevant..
31. andro. posted on 10 Jan 2013, 10:00 2
A huge lot of carriers in th uk and europe reduced the lumia 800 and 610 to about 90 - 150 bucks respectively on pre pay/no contract in order to clear backlogs of unsold stock. These sales no doubt influenced Nokias christmas sales fugures but substantial loses were incured because the handsets were origionally meant to be previous selling at about 300% dearer
67. TROLL (limited) 5 days ago posted on 10 Jan 2013, 14:46 0
Very true, here in UK it's free on a mid price plan L920, while other highend Android sets are from £36.
4. Ruckus posted on 10 Jan 2013, 08:03 11
Im happy to say I bought a Lumia for my wife in November :-D
78. Ruckus posted on 10 Jan 2013, 15:11 8
Not at all. She switched from Android and she loves her Lumia.
5. Kan_wha posted on 10 Jan 2013, 08:05 7
Thats it? 4.4Million units? At below market prices, you'd think it'd be a lot higher...
13. windroid posted on 10 Jan 2013, 08:43 3
If they were below market price Nokia would not have returned to profitability.
32. andro. posted on 10 Jan 2013, 10:02 2
Well below market price,Lumia 800 reduced from 450 bucks to 150,some serious potential revenue written off at christmas for Nokia unfortuantely. Now these handsets were selling extremely slow in the first place so perhaps an sale is better than no sale no matter how low the selling price has to be reduced to.
6. pongkie posted on 10 Jan 2013, 08:06 8
bought an asha dual sim... wondering when will they make lumia dual sim
7. lee480 posted on 10 Jan 2013, 08:13 10
haha Sony sold exactly double of Nokia, 8.8 million. Sony Xperia ftw!
12. Hemlocke (unregistered) posted on 10 Jan 2013, 08:39 17
The difference being, the WP8 Lumias are actually good phones. All Sony makes, these days, is garbage phones and good camera sensors. The Ion and the Xperia T are two of the worst Android devices I have ever used, and the Xperia S is beneath mention.
18. lee480 posted on 10 Jan 2013, 09:03 5
I used the Xperia Ion and I appreciate the aluminium casing instead of the cheap glossy plastic and the camera sensors were producing freaking awesome images. (Sony made Nexus 4, S3, iPhone 5 camera sensors.) And in my country, you cant see people using Lumia phones.
19. Hemlocke (unregistered) posted on 10 Jan 2013, 09:07 5
I will give Sony the camera sensors, as I originally stated. I also liked the aluminum casing on the Ion. However, it was buggy, got warm under a load or when the battery got low, it had terrible battery life, and it was just generally a nuisance when it came to the software.
34. andro. posted on 10 Jan 2013, 10:05 0
Your on your own there,I never really rated Sony handsets when ericsson was involved but the Xperia T is the first handset post ericsson from Sony i can actually say is a good handset.We had very little if any returns and it was a good seller
53. jackhammeR posted on 10 Jan 2013, 12:00 1
you live in Kongo?
23. MeoCao (unregistered) posted on 10 Jan 2013, 09:26 5
920 is good phone despite poor OS. The camera is top notch, but Nokia phones are light years behind Sony.
Xperia Z will surpass 920 in camera except maybe OIS
33. pookiewood posted on 10 Jan 2013, 10:03 5
43. MeoCao (unregistered) posted on 10 Jan 2013, 10:39 4
WP8 is poor OS:
- big file
- few features
- limited customization
- low resolution
- little CPU support
- messy and distracting UI
49. eisenbricher posted on 10 Jan 2013, 11:12 8
- Not few for sure, but a different set of features.
- adequate. Heavy Cutomization if for uber geeks.
- can your eye spot pixels @ 300+ ppi? Everything above 300+ is about equal.
- Still runs like rocket on it
111. MeoCao (unregistered) posted on 10 Jan 2013, 21:14 1
what you say is mostly true if you compare WP8 to iOS. You know what I say is comparing WP8 to JB.
It's not about you WP fanboys, it's about the normal users and they want the best things available, that's JB
54. jackhammeR posted on 10 Jan 2013, 12:01 10
low resolution???kid, go back under the rock you've crawled out from under.
109. MeoCao (unregistered) posted on 10 Jan 2013, 21:10 0
lol it's you who is living in a cave man, and the Neanderthals would giggle to hear your opinion.
For an OS aspiring to beat the best, 720p is short. JB 4.1 came out back in June and supports 2560x1600 or even higher.
87. papss posted on 10 Jan 2013, 17:08 4
Wow very surprised to see you bash WP8...all of your responses aren't facts.. They are your opinion... Messy and distracting UI? So the MySpace UI that you use is good eh? As usual you talk and sound like a blind fanboy
92. TROLL (limited) 5 days ago posted on 10 Jan 2013, 17:25 1
+1 from me very true!
- you can't download .mp3, must use scrap zune
- Apps are rip off, same apps expensive than iOs
- No Roots No custom Roms No jailbreak No Dev support
- Closed half-baked OS
- List continues.....!
39. darac posted on 10 Jan 2013, 10:17 2
It's not nearly as good phone as Nokia fans imagine:
The Nokia Lumia 920 has received mixed reviews. CNET rated it 4 stars out of 5, praising the screen, attractive design, great Nokia-exclusive apps, and an enjoyable OS, while the negatives were the unimpressive battery life and heavy weight. 
The user rating is 4.5 out of 5. ExpertReviews gave the Lumia 920 a rating of 5 out of 5. 
Mobiledia gave it 4 out of 5.  Laptop Mag rated it 4 stars out of 5, praising the colorful design, superb camera, eye-popping HD screen and wireless charging, as well as the useful Nokia apps. The cons were that it's relatively heavy and that Windows Phone 8 does not have as many apps as Android and iOS. 
Dan Nosowitz from Popular Science wrote: "I spent a long time with the Lumia 920, longer than I usually spend with review units of phones. This is a phone I was really excited about! But I just can't recommend it. It's way too bulky, the battery life is lackluster, and Windows Phone 8 has some big problems on top of that. It's not a bad phone; when you're swiping away through a gorgeous weather or news app, you completely forget its shortcomings, and it's nicely priced. But there are better phones out there." 
Adam Z. Lein from Pocketnow wrote: "Our final rating is going to be a 8.3 out of 10. The hardware, the screen, the camera, the sound quality, the video stabilization, and Nokia’s custom apps are all extremely impressive. The pricing is pretty great too. The only negatives for me are really the large size and lack of user-replaceable battery. Everything else on this phone is top notch." 
Sam Biddle from Gizmodo wrote: "It kills me to say this, because I wanted to own this instead of an iPhone 5, but no. No you shouldn’t. It’s too big and heavy. It’s not fun to own. It’s not enjoyable to use. If you want a Windows Phone, check out the very good HTC 8X. But this? No, not this." 
However, Luke Hopewell from Gizmodo Australia wrote in reply: "Yes it’s heavy, but it’s something you get used to. Sam said that the phone is too heavy to even contemplate living with, and that’s almost true. If you can get past the weight of the device, you’re in for a treat. The weight is almost beneficial when it comes to taking photos, to be honest. It makes it easier to stabilise." 
Dieter Bohn from The Verge wrote: "The software and hardware tradeoffs inherent in the Lumia 920 could be worth it if you’ve bought into the Microsoft ecosystem, but for most people I don’t think it’s a sure bet." 
Jessica Dolcourt of CNET in her camera review wrote: "Photo quality was strong and fairly consistent, though photos had a blue cast to them and the Lumia 920 had problems with contrast and absolute sharpness compared with the others." 
Frederick Charles Fripp from IT News Africa wrote "...it is fat and heavy and runs on a system that is essentially all show and no action. "
50. eisenbricher posted on 10 Jan 2013, 11:13 6
Reading too many reviews doesn't mean that you can judge the phone. Go and take a look at user reviews. Everywhere it scores top notch.
125. UrbanPhantom posted on 11 Jan 2013, 03:17 1
Darac, you sure write a lot, for somebody with such a weak knowledge of WP8 devices...
69. TROLL (limited) 5 days ago posted on 10 Jan 2013, 14:50 1
These arn't Nokia fans but WP users all in here!
112. MeoCao (unregistered) posted on 10 Jan 2013, 21:16 0
You see the truth dude, they want to tie Nokia to WP sinking ship.
116. tashreef posted on 10 Jan 2013, 21:39 1
These all are Nokia fans ..... that's why u have thumbs down....
Go Troll somewhere else....