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Nokia's first quarter phone sales slumped 30%

Posted: , by Victor H.

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Nokia's first quarter phone sales slumped 30%
Nokia might have just sold its phone business to Microsoft, but it’s not giving it away in a great shape. In the first quarter of 2014, Nokia phone sales slumped by 30% on the year, a decline due to a slowdown in sales of both Nokia feature phones and smartphones.

Nokia does not give any hard numbers for Lumia Windows Phone sales this time, but it says very clearly that the reason for the decline in Lumia sales lies in the “strong momentum of competing smartphone platforms” (Android and iOS, obviously). Put simply, Nokia admits that it is the Windows Phone platform’s lack of momentum that slows down sales.

Nokia’s handset unit, now part of Nokia's discontinued operations, registered a 30% sales decline to $2.66 billion (€1.92 billion) in the first quarter. It contributed for a widening operating loss of €326 million, compared to a €73 million loss in the same period last year.

Of feature phones and smartphones, Nokia says the loss was mostly due to a stark decline in feature phone sales, and to a lesser extent - due to declining smartphone sales.

Interestingly, Nokia smartphone sales have increased from the 5.6 million units it sold in Q1 2014, but average selling price has gone down. We’d guess that this has a lot to do with affordable smartphones like the Nokia Lumia 520 making a large chunk of Lumia overall sales. Feature phones declined in both volume and average selling price.

"On both a year-on-year and sequential basis, our Mobile Phones net sales were affected by competitive industry dynamics, including intense smartphone competition at increasingly lower price points and intense competition at the low end of our product portfolio," Nokia said in its Q1 financial report.

Nokia's first quarter phone sales slumped 30

source: Nokia (PDF)

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posted on 29 Apr 2014, 03:55 19

1. FriendsOfSamsung (unregistered)


RIP Nokia

posted on 29 Apr 2014, 04:08 5

3. Altair (Posts: 325; Member since: 02 Feb 2012)


Wrong statement mr. friendofshamesung. Nokia lives and grows.

Shamesung is strugling with its plastic productline. I've heard that a lot of shamesung industrial rogue team is now unembloyed (they call them designers) because of Nokia.

posted on 29 Apr 2014, 04:15 17

5. gigaraga (Posts: 1047; Member since: 29 Mar 2013)


And that's where your wrong. And get it right...it's SAMSUNG. Struggling? Not even close...unlike the state in which Nokia is. Even the title of this article screams Struggling for Nokia. Maybe you to touch up on your facts (big time) and ur spelling too

posted on 29 Apr 2014, 11:38 1

71. sgodsell (Posts: 1249; Member since: 16 Mar 2013)


I find it funny that Microsoft and Nokia sold 5.3 million smartphones in Q1 2014. Out of those smartphones, how many sold that were Nokia X forked Android phones which only run Microsoft apps and services.
I would love to see those figures.
The real statement is Microsoft and the WP platform is struggling. If you go into the Microsoft stores and look at their lineup of WP devices and the advertisements that go along with their phones right now. The ads say things like get a free case with a WP 8.1 ready 1020. It doesn't even have WP 8.1 on the device yet. Thats like Apple saying buy our iPhone 5s that is iOS 8 ready. Or Samsung saying buy our Galaxy S5 that is Android 5.0 ready. That reeks of desperation from Microsoft.

posted on 29 Apr 2014, 04:20 21

8. tech2 (Posts: 2076; Member since: 26 Oct 2012)


Did you actually say: 'Nokia lives and grows...... and Samsung is struggling' < Funniest comment I've read in a while ....lol

Fun Fact: Nokia was sold to MS for less then what Samsung earned in a quarter ...A QUARTER !!!

posted on 29 Apr 2014, 04:30 15

9. nokia12 (Posts: 324; Member since: 19 Nov 2013)


where are WP trolls like rodneyj now ? see this is the proof .. Microsoft is just plain bitch .. every time they have partnered with someone they have burnt it to the ground .. even they managed to ruin a 100 year old market leader to the ground with their closed ass OS..
i hate them for ruining Nokia .. i hope this windows phone burns and fails so bad .. Please Nokia.. Please Return in 2016 ..

posted on 29 Apr 2014, 05:04 12

19. alterecho (Posts: 1082; Member since: 23 Feb 2012)


Exactly! This is an 'In your face', for WP fanboys. Let's see what reason excuse/reason they cook up this time.
Windows Phone helped Nokia my foot.

posted on 29 Apr 2014, 18:23 1

78. AJagtiani (Posts: 463; Member since: 24 Apr 2014)


Do you ever NOT troll on WP/Nokia/MSFT ?

posted on 29 Apr 2014, 06:18 4

30. brrunopt (Posts: 508; Member since: 15 Aug 2013)


oh god... Nokia was already burning when Elop arrived

posted on 29 Apr 2014, 07:08 15

33. Finalflash (Posts: 1765; Member since: 23 Jul 2013)


Right, and WP literally threw fuel on that fire.

posted on 29 Apr 2014, 07:18 4

37. nokia12 (Posts: 324; Member since: 19 Nov 2013)


lol.. +1

posted on 29 Apr 2014, 10:12 5

62. PBXtech (Posts: 980; Member since: 21 Oct 2013)


I think he changed his name to NokiaFTW, hard to tell those two apart these days. Both blind to the faults of WP and its future.

posted on 29 Apr 2014, 10:44

67. express77 (unregistered)


Nokia has run in ground many times in past 100 years. But don't worry as they have had even more success everytime they woke up from the troubles.

posted on 29 Apr 2014, 10:58

70. eharris560 (Posts: 60; Member since: 28 Dec 2012)


You spew nonsense

posted on 29 Apr 2014, 14:26 2

76. Ashoaib (Posts: 2116; Member since: 15 Nov 2013)


So actually it was samsung which is sold to microsoft? not nokia? OMG Altair, where were you all the time when the media was fooling us???
only today I come to know by you only that nokia lives and grows and it was originally samsung which was struggling due to its plastic... ironically samsung didnt end its struggle by using metal and rather opted to sold out to microsoft... thank you Altair for providing correct information to the whole world

posted on 29 Apr 2014, 04:16 7

6. Johnnokia (Posts: 522; Member since: 27 May 2012)


Shut up troll!

Try to educate yourself and read the financial earning report before bashing with your crappy comments.
Nokia return to profitability for the continuing operation:

- In Q1 2014, underlying operating profitability for Nokia’s continuing operations increased to EUR 304 million, or 11.4% of net sales, compared to EUR 254 million, or 8.1% of net sales, in Q1 2013.

- Networks achieved solid underlying operating profitability, with Q1 2014 non-IFRS operating profit of EUR 216 million, or 9.3% of net sales, compared to EUR 196 million, or 7.0%, in Q1 2013. This was primarily due to a higher gross margin which benefited from a higher proportion of software sales, significant efficiency improvements in Global Services and a higher proportion of Mobile Broadband sales.

- HERE’s external net sales were EUR 185 million, an increase of 13% year-on-year, driven by strong sales to
vehicle customers.

posted on 29 Apr 2014, 04:35 6

12. tech2 (Posts: 2076; Member since: 26 Oct 2012)


Annual reports are always written to patronize shareholders. The ultimate truth is the actual bottom line figures. Here underlying operating profitability is nothing if the overall income statement is bleeding money.

P.S.: I know because I've taken minutes in several AGMs over the years. Companies make it sound much nicer then things actually are.

posted on 29 Apr 2014, 05:14 5

22. nokia12 (Posts: 324; Member since: 19 Nov 2013)


not only that where is the comparison to Q4 report .. it was the holiday quarter and still Nokia wasn't able to increase sales from Q3 and sales declined in Q4 for lumia phones... i think it was 8.9 million if i am right.. this time they are not even disclosing it .. this clearly shows windows phone sales sucks

posted on 29 Apr 2014, 06:17

29. brrunopt (Posts: 508; Member since: 15 Aug 2013)


sure they do, that why they keep rising in many markets

http://www.phonearena.com/news/Android-closes-in-on-60-market-share-in-the-U.S.-as-iOS-takes-a-hit-in-Kantars-latest-report_id55580#2-

posted on 29 Apr 2014, 07:20 7

39. nokia12 (Posts: 324; Member since: 19 Nov 2013)


sure but the majority of that share comes from lumia 520 which was sold at a loss..

posted on 29 Apr 2014, 09:00 1

55. akki20892 (Posts: 3476; Member since: 04 Feb 2013)


After deal, Nokia will more profitable than before, because NSN and Here Map. and of course patents.

Nokia is still alive go tohttp://company.nokia.com

posted on 29 Apr 2014, 03:57 4

2. KillerKeyboard (Posts: 307; Member since: 21 Nov 2013)


With topics like this one, everybody becomes a business analyst.
:D

posted on 29 Apr 2014, 04:30

10. Alex123 (Posts: 222; Member since: 17 Oct 2012)


Nice comment :D

posted on 29 Apr 2014, 05:46

25. KillerKeyboard (Posts: 307; Member since: 21 Nov 2013)


Proven accurate. ^_^ v

posted on 29 Apr 2014, 04:11 10

4. 0xFFFF (Posts: 3082; Member since: 16 Apr 2014)


They bet the farm on a closed source loser of mobile OS made by a company most tech people hate.

Nokia blames the drop on “strong momentum of competing smartphone platforms”.

Without Elop, Nokia goes with Android, quickly becomes the fastest growing Android maker, and soon after becomes the #2 player in Android behind Samsung. Nokia grows quarter after quarter. Millions of people use Nokia's excellent cameras. The brand is revered by Android fans and feared by rivals.

The things that might have been. Rest in piece, Nokia.

posted on 29 Apr 2014, 04:36 7

13. nokia12 (Posts: 324; Member since: 19 Nov 2013)


+1
waiting for 2016.. The undertaker will rise again.. :D
Nokia + Android - Revenge will be ours..!! till then sit back and watch Windows phone that will be called Microsoft Lumia fail so bad.. just like surface tablets

posted on 29 Apr 2014, 05:02 1

18. tech2 (Posts: 2076; Member since: 26 Oct 2012)


Undertaker just lost my friend. In WWE, to Brock Lesnar and in real world to Microsoft.

Two years is a lot of time to loose in the world's most competitive market.

posted on 29 Apr 2014, 05:24 1

23. nokia12 (Posts: 324; Member since: 19 Nov 2013)


nah its actually not that much time.. now they have 7.5 billion $ they can get out of all the financial trouble..

and in the mean time which is 1.5 years they can look for a manufacturing company to buy, hire great engineers and design phones till then and release by MWC 2016 ..

Nokia wont loose anything, maybe in USA sure .. but in countries like India , South Africa they won't loose anything at all because the brand value of nokia is so strong, even if nokia comes back after 5 years it will still be able to easily sell well there, No carriers there and don't forget Nokia feature phones will still be manufactured and sold by microsoft under Nokia's name so general public won't even feel that, nokia is gone .. motorola exited 2 years ago and when it came back with moto G it has achieved massive success with only 1 phone.. its just shame that Nokia didn't had android..

and with so many fans waiting for a true Android + Nokia it is bound to get sold out..

posted on 29 Apr 2014, 09:06 6

56. akki20892 (Posts: 3476; Member since: 04 Feb 2013)


I feel same dude....waiting for 2016 will begin new legendary era again....!!! Will come back like you never seen before. Nokia + Android = Legendary Phone.

posted on 29 Apr 2014, 08:27 2

48. Sniggly (Posts: 7051; Member since: 05 Dec 2009)


That would be the same parallel universe where Firefly was never cancelled and is now in its 12th Emmy Award winning season.

....
....
....

...Want to help me build an interdimensional portal?

posted on 29 Apr 2014, 04:19 3

7. asingha94 (Posts: 288; Member since: 08 Apr 2012)


elop fu==r

posted on 29 Apr 2014, 04:31 4

11. GreekGeek (Posts: 792; Member since: 22 Mar 2014)


Nokia X...

And the dreaded tile UI

Enough to potentially scare people away

posted on 29 Apr 2014, 04:44 13

14. Planterz (Posts: 828; Member since: 30 Apr 2012)


Windows Phone sucks. The interface sucks. The availability of poppular apps sucks. IE sucks. Bing sucks. Lack of customization sucks. Good cameras, but the amount of suck WP brings isn't enough to bring more than a handful of customers.

The only person I know (in fact - the only person I've SEEN) with a Windows phone only bought it - a Lumia 521 - because it was the cheapest smartphone T-Mobile had. And he hates it more than I hate it when people can't use your/you're correctly.

Nokia sales are down? That's because they've aligned themselves with a platform that SUCKS! And people don't want to buy that crap. They don't want to pay $.99 that for an app that you can get on Android or iOS for free. They don't want to have to wait a few weeks/months/year to play a game that everybody else is playing.

I want WP to succeed. It would breed more competition in the marketplace, and competition breeds improvements and innovations for everybody. But if your OS sucks, then people won't try it, app developers won't bother developing for it, and ultimately manufacturers won't make phones for it.

Nokia's mistake was the alignment with Microsoft. They hoped that the backing of a juggernaut company would result in success for them. Unfortunately, they didn't realize how much Windows Phone SUCKS. If they had kept their reputation of making well-built phones, but had gone with Android, they might be actually competing with Samsung and Apple rather than scraping along with the dim hope that things might get better.

Think about it - a Nokia Lumia 1020 that ran Android? F#$% yeah! I'd be first in line to buy one. I'd camp out like those iDiots that wait in line for the next iPhone. But running WP, the 1020 has zero interest to me.

posted on 29 Apr 2014, 05:13 8

20. eisenbricher (Posts: 971; Member since: 09 Aug 2012)


Hats off to you sir, you nailed it. I also have a main Android phone and a secondary 520. Gotta admit, WP sucks. I was a fanboy at start but you start noticing differences if you are using both OSes, as such in my case.

I tried to love WP more but that just didn't happen. WP is sure better at some places but then Android is far better and versatile. Just for example as an avid music lover I can't stand the 520. The interface sucks, usability sucks, playlist management sucks, there are some bugs which duplicate your songs on SD card, there aren't good players available in market. While on Android side PowerAMP satisfied every need. Hands down then best music player!!

Well there are many such examples but it'd make this post too long.

posted on 29 Apr 2014, 07:48 3

45. jroc74 (Posts: 4802; Member since: 30 Dec 2010)


+1 to PowerAMP. One of the few I use. I might dont need to use any others...havent updated it in awhile.

posted on 29 Apr 2014, 10:52 2

68. express77 (unregistered)


Unfortunately you are right. Microsoft has made their OS so bad even though they could have made it best OS(excluding apps of-course). Either it is true or not but they made their OS so limited just to buy Nokia so cheap. But I can't say anything about wp8.1 though.

posted on 29 Apr 2014, 04:48 2

15. microsoftnokiawin (Posts: 968; Member since: 30 Mar 2012)


and so it begins "wp sales are gonna rise now ms bought nokia" we shall see!

posted on 29 Apr 2014, 04:49 2

16. Loubielou (Posts: 219; Member since: 11 Jul 2012)


ELOPS A _ANKER,an All he was Told by Microsoft is Downgrade Nokia so they could Overtake at the Lowest Value,but Microsoft have got to Stop thinking there Name is Popular because its totally not,They Tried to Copy Apple but will never Succede in Doing the Same as Apple,Windows is not Right for Nokia,its alright having good cameras but if the softwares not so easy to use then you Struggle thats Why?Symbian & Windows was not right for Nokia

posted on 29 Apr 2014, 04:55 3

17. livyatan (Posts: 692; Member since: 19 Jun 2013)


I called this three months ago and got laugher at by fanboy morons who bought into the whole "fastest growing OS" idiocy.

WP is going down, not up.
Oh and Nokia X is going to sell more than any Lumia ..just look at the GsmArena's daily hit chart..the phone so far gained more hits than any WP to date

posted on 29 Apr 2014, 07:18

38. jroc74 (Posts: 4802; Member since: 30 Dec 2010)


I'm curious about the Nokia X...I think in an article it was said to be doing poorly. GSMArena huh....might gotta read up on it there...and just do some researching about Nokia X sales.

If it really is doing better than reported in that article.....that might be really telling about Nokia and Android teaming up...

Time well tell tho...

posted on 30 Apr 2014, 03:25 1

79. microsoftnokiawin (Posts: 968; Member since: 30 Mar 2012)


livytan real fanboys have stopped buying nokia phones since 2012 these people crying are WP fanboys

and fastest growing os Total propaganda from Microsoft. Windows had 12% market share in smartphones in 2008. Had 8% in 2009. Had 5% in 2010. Had 3% in 2011. Had 2% in 2012. Now has 3% in 2013. so yeah just lies

posted on 30 Apr 2014, 21:11

86. jroc74 (Posts: 4802; Member since: 30 Dec 2010)


Damn.....when you put it that way....wow....

Whats even more amazing is you are combining Win Mo and WP...

WP launches in 2010....and the total Windows smartphone market share shrunk from 5% to 2% by 2012 according to your post...

MS is gonna have to do something soon. Elop...I hope you know what you are doing...

posted on 01 May 2014, 20:27

87. microsoftnokiawin (Posts: 968; Member since: 30 Mar 2012)


i'm glad you found that factual !

posted on 29 Apr 2014, 05:14 4

21. AfterShock (Posts: 2806; Member since: 02 Nov 2012)


Should have taken both os to task, instead of banking on just one.
Listening to a single man instead of the industrial demand for more android was a complete failure.
I don't see how this company could do worse now, they're going to hit the bottom.
Irony is a bottom feeder os, now has a bottomed out OEM.
MS=Mobile sclerosis of mobility.
It just won't move.

posted on 29 Apr 2014, 06:27 6

32. GreekGeek (Posts: 792; Member since: 22 Mar 2014)


Spot on.

When Samsung knew BADA was going nowhere, they immediately ditched it.

NOKIA would've done the same, but pride got the better of them,

now they are stuck in a lethargic OS that is barely moving

posted on 29 Apr 2014, 10:57 1

69. express77 (unregistered)


They thought Wp OS would save them but they never thought MS was going to keep WP OS so limited. They didn't wanted to use android and it was financially difficult to continue Meego. So WP was their only choice. But it is better than choosing Android(Android is still my best OS) for the sake of choice and competition.

posted on 30 Apr 2014, 03:29

81. microsoftnokiawin (Posts: 968; Member since: 30 Mar 2012)


yeah but meego was alot more of a success then wp so it would've paid off in the long range as it was loved by everyone !

posted on 30 Apr 2014, 09:53 1

83. ThreeFourSeven (Posts: 34; Member since: 23 Nov 2011)


That makes no sense. Nokia could have gone vanilla if they didn't want to develop a skin and added their exclusive apps. That's pretty much what they did with WP. What's the difference between Nokia's WP and other OEMs. Camera and their exclusive apps.

posted on 30 Apr 2014, 03:28 1

80. microsoftnokiawin (Posts: 968; Member since: 30 Mar 2012)


do you guys remember palm i wouldn't be surprised if you don't they teamed up with Microsoft to make phones a while back !

posted on 29 Apr 2014, 05:29

24. androiphone20 (Posts: 1451; Member since: 10 Jul 2013)


Forbes is a joke, a f*ucknin jokehttp://www.phonearena.com/news/Forbes-thinks-Windows-could-surpass-iOS-in-just-three-years_id50083

posted on 29 Apr 2014, 06:14 1

28. brrunopt (Posts: 508; Member since: 15 Aug 2013)


It already has in many markets , its not sy-fy

posted on 29 Apr 2014, 07:14 2

35. PapaSmurf (Posts: 8306; Member since: 14 May 2012)


Truth hurts.

posted on 29 Apr 2014, 05:50 1

26. Liveitup (Posts: 1255; Member since: 07 Jan 2014)


This is exactly why I dislike some Android fanboys. They are ready to pounce on every bit of negative and proclaim WP dead. They only want to see Android ultimately run on mobile devices alone. So much for competition. They start with the Tile interface bashing while Android OEM's are moving from Icons to Tiles. HTC looks like a Windows Phone not your traditional Android interface, Android is now flat everybody is now flat that is also part of the reason in my personal opinion for things slowing down, you can hardly tell the difference these days between a WP app and an Android , iOS app , why would people leave Android and iOS when they all are looking similar these days, the uniqueness is lost for most part before when Android and iOS used Skeuomorphism then Flat UI modern looks stood out, now they are with the OS are looking similar kinda felt this would happen.

With so many OS dying off and have died people should welcome competition, its healthy for choices, when Android alone is around people will regret not having a different experience, we are humans after all.

posted on 29 Apr 2014, 06:02 7

27. nokia12 (Posts: 324; Member since: 19 Nov 2013)


we don't want Windows phone that's it .. we don't want closed ass OS ..
sure we all like new innovation and we will welcome BB 10 , Tizen , Ubuntu OS and any new better OS... But Windows phone is not better at all... windows phone fans have smothered for 4 years for basic features, with paid apps which are free on other platforms , ...

you like it you keep buying windows phone.. majority people don't like those tiles and what they can't even get rid of it ? so they don't buy it look at the numbers,... end of story..

posted on 29 Apr 2014, 07:25 6

40. jroc74 (Posts: 4802; Member since: 30 Dec 2010)


And just how many other Android UI's are using tiles....last time I checked Android was more than just HTC.

And in all honesty....you really are hung up on the Flat design thing. Really...

posted on 29 Apr 2014, 08:17 12

46. tasior (Posts: 215; Member since: 04 Nov 2012)


Hardly anybody likes WP, because it is a closed OS. Therefore it is direct competition for IOS not Android. We - the OS interested part of society - want to see more competition for Android not for IOS.
Nokia has always been open. You had always been able to use whatever browser You wanted, to save whatever files You wanted, wherever You wanted. To send everything via whatever transfer technology You wanted. Even they motto was: Connecting people. So everything could be connected to everything, with no problem. That was their crucial functionality. And then came WP and for over a year You couldn't even send an mp3, between phones...

The Windows Phone hatred is well earned, and Android Fanboism has nothing to do with it...

posted on 29 Apr 2014, 09:25 3

57. jroc74 (Posts: 4802; Member since: 30 Dec 2010)


This post needs to be repeated...along with some others....

Growing up all I knew was Nokia...and Motorola. This Nokia isnt the same Nokia I knew of before the iPhone and Android launched.

posted on 29 Apr 2014, 10:18 3

63. PBXtech (Posts: 980; Member since: 21 Oct 2013)


Can't +1 this enough.

posted on 29 Apr 2014, 08:38 5

50. Sniggly (Posts: 7051; Member since: 05 Dec 2009)


I don't want *Android alone* in the marketplace. I just don't consider WP to be a competitive OS at the same price points as comparable Android phones.

This news should trouble you, because Nokia by far is the best Windows Phone has to offer. Without Nokia Windows Phone is barely a blip on the radar, and even they are struggling to maintain sales momentum against Android. It looked for a little bit like they were going to capitalize on the low end, which Android OEMs hadn't executed at anywhere close to high quality, but multiple Android OEMs saw Nokia's success there and didn't sit still. the Moto G is a prime example of this.

HTC is the only OEM to do anything close to Windows Phone, and even then Blinkfeed is only on one of the homescreens and is largely ignored by those who use the One. My two friends who have the One have never used Blinkfeed that I've seen.

Beyond that, Android, iOS and Windows Phone look very different, and you can't blame Windows Phone's faliure to compete on the flatter aesthetic adopted in the former two OSes. Windows Phone fails to compete because it doesn't offer anything the other two don't have, while the other two have better ecosystems and features.

Think about it; Microsoft's advertising for Windows Phone has largely revolved around various hardware things. First they tried pushing tiles as a quicker, more convenient way of seeing notifications and such. Then they pushed the physical camera button thing. Then when that failed they took to bashing the competition as much as possible and setting up a rigged speed contest. Then when both of those blew up in their faces they leaned on Nokia's reputation and pushed things like the camera quality and glove friendly touchscreen.

Microsoft has never done ads showing unique and cool features that Windows Phone has over Android or iOS, because it doesn't have any.

Android won't be around forever. Eventually there will likely be a system that comes around and unseats it. It is extremely unlikely to be Windows Phone, however.

posted on 29 Apr 2014, 10:00 3

60. nokia12 (Posts: 324; Member since: 19 Nov 2013)


+1 very good and thought out comment sir..

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