x PhoneArena is hiring! Reviewer in the USA

Nokia's first quarter phone sales slumped 30%

Posted: , by Victor H.

Tags :

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)

87 Comments
  • Options
    Close






posted on 29 Apr 2014, 03:55 19

1. FriendsOfSamsung (unregistered)


RIP Nokia

posted on 29 Apr 2014, 04:08 5

3. Altair (Posts: 367; 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: 1454; 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: 3899; 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: 3477; 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: 520; 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: 1098; 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: 466; 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: 742; 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: 3224; 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: 520; Member since: 19 Nov 2013)


lol.. +1

posted on 29 Apr 2014, 10:12 5

62. PBXtech (Posts: 1032; 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: 78; Member since: 28 Dec 2012)


You spew nonsense

posted on 29 Apr 2014, 14:26 2

76. Ashoaib (Posts: 3229; 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: 1108; 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: 3477; 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: 520; 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: 742; 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: 520; 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: 3901; 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: 344; 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: 241; Member since: 17 Oct 2012)


Nice comment :D

posted on 29 Apr 2014, 05:46

25. KillerKeyboard (Posts: 344; Member since: 21 Nov 2013)


Proven accurate. ^_^ v

posted on 29 Apr 2014, 04:11 10

4. 0xFFFF (Posts: 3806; 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: 520; 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: 3477; 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: 520; 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: 3901; 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: 7305; 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?

Want to comment? Please login or register.

Latest stories