Nokia releases fourth quarter earnings; report shows drop in Lumia sales

Nokia releases fourth quarter earnings; report shows drop in Lumia sales
Nokia released its fourth quarter earnings on Thursday, and the numbers show a pretty sharp decline in handset sales. Sequentially, the drop was 5%, but year-over-year, the Finnish manufacturer reported a steep 33% decline in phone sales. Smartphone sales dropped from 8.8 million in the third quarter, to 8.2 million for the three months ending in December. The scary thing for Nokia is that the fourth quarter included the Christmas holiday season.

If there is good news for Nokia, it is that soon this won't be their problem. The company will soon close on its deal with Microsoft, which means the software giant will soon have the headache of turning around Nokia's handset business. The year-over-year decline in smartphone sales was the second for Nokia since launching the Lumia line

Nokia is responsible for 90% of Windows Phone sales, but the numbers show that the platform is still trailing the iOS and Android duopoly by a huge margin despite the sense that Windows Phone is picking up some momentum. Consider this telling statistic, courtesy of telecom analyst Benedict Evans. Since the launch in 2011 of the Nokia Lumia line, the company has sold 44 million handsets, less than the amount of iPhones sold by Apple last quarter. And more Android units are sold every three weeks than the total number of Lumia handsets sold since inception.

After the deal closes, Nokia will be left with a digital mapping company, a network equipment company, and a number of patents that it will manage. The network infrastructure group, which will comprise the biggest part of the new Nokia, saw sales drop 22% over 2013 as it exited non-core contracts and operations. The division did show a small €15 million profit ($20 million USD), compared with a net loss of €1.4bn ($1.91 billion USD) in 2012. But that huge loss was due to a huge restructuring undertaken in 2012.

For the fourth quarter, Nokia made a profit of $248 million USD or 6 cents a share, compared to the year earlier $402.4 million profit, or 8 cents a share. Revenue, at $4.7 billion, was not only down 21% from 2012, it was well below street estimates of $6.9 billion.

source: Nokia via FinancialTimes



1. Just.Saying

Posts: 132; Member since: Apr 04, 2013

Nokia. Nokia, Nokia.......10 years ago, I loved you, Now, its Nokia Who?????

11. akki20892

Posts: 3902; Member since: Feb 04, 2013

In Nokia World 2011 if they launch Android Powered Nokia they should be selling around 100M to 150M right now. But it didn't happened. Sad Nokia. U MF Elop. and of course stupid Nokia's members who selected elop, after declining share haven't realize that nokia still going down and did not kick elop out.

15. nokia12

Posts: 610; Member since: Nov 19, 2013

I can bet if they just release Nokia lumia 525 with android on it.. it will sell more than entire windows phone sales units in 1 quarter..

33. Liveitup

Posts: 1798; Member since: Jan 07, 2014

Sometimes I wonder why ignorant people comment. I guess by some people's reasoning that Android sucks when HTC and others who sells majority or strictly Android devices keeps struggling?. Individuals comment without knowing the history, without MS Nokia would have already been dead a long time ago, besides they did not have enough money to support themselves going with Android , Elop himself said that, people do your homework instead of writing ignorance or at least read the "Burning Platform" memo. WP does not suck, WP is awesome, The platform grew from 13.3 million last year to over 30 million this year with Lumias , how does that suck?. I don't get some of these Android and iOS fanboys who bash WP when its clear as day that Android and iOS are flat, clean and minimalistic following in WP footsteps people imitate great things not things that suck. Both Iphones 5S and 5C and Galaxy Note were released and yet Nokia still did not take a significant hit. Haters will hate.

34. papss unregistered

Ahhh you can't say that here.. The lemmings are listening ❕❕

39. nokia12

Posts: 610; Member since: Nov 19, 2013

and people like liveitup blindly believe what the MS trojan Said without checking facts.. "without MS Nokia would have already been dead a long time ago" i can laugh all day long why do people believe this bullcrap statement .. sir please explain the maths to me.. Windows phone costs 10$ licencing fees per handset android is free.. if nokia had sold good amount of mobiles , in 2 years nokia would have ended up paying more to microsoft than receiving 1 billion payment.. so your statement of microsoft is crap excuse.. this 1 billion financial assistance was merely a journal entry in books.. no real financial support was given .. Nokia had way more cash reserve in 2011 to support itself for 3 years without external aid.. and if they had scored a hit with Android they would have been bigger than What samsung is today let me guess now you will say though android is free but nokia would have ended up paying for getting a nokia UI/skin for android .. go and calculate how much nokia had to spend up making exclusives apps for Lumia , signing game contracts with EA exclusives for nokia(at that time Samsung,htc were in competition in WP ) , paying developers to make apps for windows and nokia because nobody was ready to develop for Windows phone.. this alone easily costed them way more than a good Android UI/skin development would have caused, and nokia didn't had to concentrate on apps for android.. The statement released by Elop "Engineering advisor" said that porting to android is simple and won't require much resources or time to make switch, Android was very similar to symbian so customers learning curve would have been zero.. they were already ready for developing for android and when elop announced Windows phone they were "Shocked" look it up.. in your own words sir "Sometimes I wonder why ignorant people comment"

42. corporateJP

Posts: 2458; Member since: Nov 28, 2009

That dude up there is drunk. The "Burning Platform" memo was more about Symbian than anything. Elop's track record speaks for itself: instant stop on Symbian support, setting up Meego and the N9 for instant failure by limiting release and replenishment, letting 90% of the R&D department go, having Android test devices either destroyed or buried, all while playing a savior on a white horse that came from nowhere (Redmond, Washington, United States, Nowhere). To this day, I still don't see how any of this could legally pass through the door at any trade organizations, the EU, the FTC, and the SEC, but somehow it did. Elop ran an inside job for Microsoft, plain and simple. I give credit where it's due, MS kept Nokia afloat, and I thank them for that. However, the board to his day is and was clueless. Even a huge portion of the stockholders went Charlie Sheen at the proposal meeting, recognizing the farce for what it was, but at the end of the day, they still sold the division. Had Nokia been free from excesive commitment and built on Android sooner, they would have easily competed or even bested Samsung based upon pure quality and design. It strictly shocks me how horribly corporations are run (not just Nokia) by people that supposedly know what they are doing, supposedly have some great experience, or put on a great smoke show. At the end of the day, a degree from an Ivy League school doesn't mean anything when you are out of touch with the consumer, the stockholder, the workforce or all of the above. Elop and Nokia's board fit into the "all of the above" category, however Nokia's board was at it well before Elop. I own and use products from all three of the top operating systems. Once I can no longer buy a Nokia-branded phone, I will more than likely get another Android. I can get my Microsoft fix from my laptop. I wish everyone the best.

47. Dastrix unregistered

+1 Very well said!

50. PBXtech

Posts: 1032; Member since: Oct 21, 2013

"Had Nokia been free from excesive commitment and built on Android sooner, they would have easily competed or even bested Samsung based upon pure quality and design." +1 for that alone.

54. Dastrix unregistered

I remember Elop saying that in one of his interviews with Engadget. That's the reason why they went with WP apparently.

56. PBXtech

Posts: 1032; Member since: Oct 21, 2013

That doesn't make sense, unless his main goal was to have MS buy it out from the beginning.

57. Dastrix unregistered

That's what I thought as well. It's not surprising, considering how he was a former M$ employee. If I recall, he also mentioned that it was almost a certainty that Nokia would've adopted Android, had it not been late in the game. Kind of contradictory, right?

64. nokia12

Posts: 610; Member since: Nov 19, 2013

I don't believe that nokia getting late in the game with android would have been a problem.. what commitment issues ? symbian it was already outsourced to accenture later.. so them loosing symbian sales and supporting symbian was already going to happen one way or the other and it happened with wp also.. leave that alone that damage was inevitable.. I am talking about after 2011.. the short term damage would have been no 2 at max.. behind Samsung .. still highly profitable and nowhere near being bought out/bankruptsy . just check 2011 news every blogger , every fan wanted and voted android , when nokia didn't choose android there were protests in Finland , rants by pundits and analysts.. this alone should have been enough reason to make android phones .. they went with untested , New born os with 0 apps and that too exclusive not for 1 not 2 but 5 whole fking... Years who Does that.? there is always risk in business decision it could have worked or it might not.. but where was plan B .. no plan B are you serious ? even an amateur businessman would have a backup plan if things don't work out.. and this is the world largest mobile company we are talking about.. and they went against the demands of consumers.. failure of lumia 800,900 should have been more than enough to start making Android phones .. they would have rocked sales if lumia 520/920 had android .. not to mention the 100 restrictions that windows phone came up with and outdated hardware.. they would had decent/good sales for 2013 with profitability.. look at Sony they were so troubled in 2011,2012 with android 2013 they had great growth and 2014 looks fantastic even looks like they will take away good amount of sales from Samsung this Time.. and keeping meego for future would have been icing on the cake

67. iTechies

Posts: 88; Member since: Dec 28, 2013

whatever you say, WP sucks and always behind android and IOS all day. and WP turned nokia down. imagine if all lumias running android? it will be awesome and beat every smartphones even xperia and galaxy devices.

69. iTechies

Posts: 88; Member since: Dec 28, 2013

WP is a fail and stay behind android and IOS and always will be. android may kinda lag but still WP cant compete. MS should thank nokia too. because without nokia, MS is dead too.

2. AfterShock

Posts: 4146; Member since: Nov 02, 2012

That hurts. I was under the belief it was doing much better via wp fans here.

5. nokia12

Posts: 610; Member since: Nov 19, 2013

lol you actually beleived that .. only low end wp is successful lumia 520,620 .. which were sold in losses.. it has always been a failure at top end . Ms fanboys says "nobody except.Samsung makes money on android.." which itself is a lie Sony,htc,Lenovo,zte they all make profit.. now that needs to be changed to "nobody makes money on wp not even Nokia " thanks to the genius elop who killed the company we all loved.. as a Nokia fan I am happy with the news , the ms infected device unit has been sold to ms along with that trojan horse..,Nokia is independent now and will be very good financially after sale.. they can make good comeback with android in 2016..

8. PapaSmurf

Posts: 10457; Member since: May 14, 2012

I wonder what rod has to say about this. He'll say this is all false and that Nokia is leading the way.

23. SleepingOz unregistered

One just told me, on an other article, that the reason why most people prefer other brands' device, like Samsung or Apple, is because they're "simpple-minded'. Talking about an excuse!

10. AfterShock

Posts: 4146; Member since: Nov 02, 2012

Yeah, it seemed like every other article they were saying it was setting some sales record on fire in other countries and such. Guess the smoke is clearing some.

62. UrbanPhantom

Posts: 949; Member since: Oct 30, 2012

nokia12 stated that HTC makes a profit - when? They are having massive losses for this year, and are well into the red. Stop posting blatant lies...

20. SleepingOz unregistered

Right.. But then again, both PA and GSMA have always been full of Nokia(and now MS) fanboys.

48. Dastrix unregistered

So, you got a problem with that? I could say the same about you. You're new to the Internet, Sherlock. Better get used to it.

61. SleepingOz unregistered

Your comment makes no sense, bro. My previous comment was directed to Aftershock who thought Nokia was doing well( which ain't exactly the case =] ) because of its zealous fan base here. But then I've got no problem with that. Like I've got no problem with nokia's decline. In fact, it kinda makes me happy to know that fanboys, like you, are having a hard time swallowing the bitter truth.

71. Dastrix unregistered

I'm delighted to hear your reply. The fact that you've entirely dismissed my comment further validates my point that you're acting on the defensive, rejecting anything that might compromise your insecure and shallow beliefs. You pretend that you don't have a problem with that. Then, why waste that miserable precious time of yours to argue pointlessly against yourself. Are you retarded? I hate to break it down to you, but you don't work towards failure, you're born with it, and sadly, it seems that you're one of the chosen few bron with that innate ability. You pretend to ignore this reality by trying to win a battle you failed to start in the first place (and lost, while you were at it). Failure at its utmost apex. Almost brings a tear to my eye. "In fact, it kinda makes me happy to know that fanboys, like you, are having a hard time swallowing the bitter truth." That's where you're wrong buddy. In fact it kinda makes me happy to read these articles, and showing retarded people how much of a failure they are.

72. SleepingOz unregistered

Your comment describes you better than me, buddy. Take a look at your reflection in the mirror and read it again. That's hilarious how you just described yourself with so much precision and then, you're trying to project it on me. Haha.. Moreover, you just can't stick to the argument without using ad hominem fallacies. Yeah right, keep pretending how happy you feel about nokia/wp failure. I can almost see the bitterness behind that fake smile of yours. =]

73. Dastrix unregistered

I appreciate the effort. You really went overboard, albeit off-topic as it pertains to my initial comment. Please refer back to it, and do provide a more concrete response. I would, however, like to thank you for taking the time to respond. I take it you're a retard. No words can express my joy, as I'm delighted to see a retard take it out on himself to express his pathetic opinions on the subject matter I so clearly established. It really makes me wonder: Are you mentally unstable? Or are you really just that stupid to realize the fact that my usage of ad hominems is for the sole sake of your humiliation? I would think the latter makes more sense, the former seems more likely because once again, you proved to fail at understanding my response. Please, do come back for more humiliation. Pain is good. Or, you'd rather kill yourself? The choice is yours. You see, I can merely cause pain.

70. AfterShock

Posts: 4146; Member since: Nov 02, 2012

Yeah, I'm seeing that now somewhat. Can't we all just get along? 8)

3. alterecho

Posts: 1106; Member since: Feb 23, 2012

"The year-over-year decline in smartphone sales was the second for Nokia | since launching the Lumia line | " "despite the sense that Windows Phone is picking up some momentum" My foot.

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