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

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73 Comments

27. kamejoko

Posts: 258; Member since: Nov 10, 2011

Who's kill nokia? it's windows phone.

25. 7thspaceman

Posts: 1597; Member since: Feb 14, 2011

On a good note now that Microsoft can use all the high tech that are available for it's smart to use it can now do what it does "BEST" write "Good soft Ware" for Windows smart phones. Later this year Windows 8 smart phones get upgraded to Windows 8.1 some nice new software features will be added to Windows smart phones to make them better and easier to use.

24. byazatt

Posts: 316; Member since: Oct 26, 2012

Bad choices are quite expensive in the long run. who could have this would the fate of mighty Nokia

21. 7thspaceman

Posts: 1597; Member since: Feb 14, 2011

The design of the case of Nokia smart phones needs to be changed now! for instance the New Verizon Icon case design is too similar to the Verizon 928 that I have. Another thing the shape of the Windows Phone tile hubs need to change to have rounded off corners and when you scroll down to get to you apps it would help if they were little gridded icons like on the iPhones or Android smart Phones. In other words Windows smart phones should have a combination of it's famous tile hubs and screens with icon grids so you do not have do a lot of scrolling down to get to an app. I have seen screen shots of Nokia concept smart phones that have different case designs then the ones they use now. Microsoft should use them. The screen shots of the MS "Surface" smart phone showed an good design that Microsoft was going to use if it made it's own smart phones before it bought Nokia. HMM use that design.

26. SleepingOz unregistered

"Another thing the shape of the Windows Phone tile hubs need to change to have rounded off corners.." Apple will sue! "and when you scroll down to get to you apps it would help if they were little gridded icons like on the iPhones or Android smart Phones." WP fanboys claim that tiles are beautiful, modern and perfect and that grids and icons, like used on the two top mobile OS, are prehistoric. That would be funny it MS comes with this.

40. papss unregistered

Personally I would stop using WP if they moved to icons. That would not fly and yes icons are prehistoric

52. PBXtech

Posts: 1032; Member since: Oct 21, 2013

I find it very interesting how WP users suddenly find icons outdated. Personally, I find that odd considering how useful and current they still remain. There might come a day when they are phased out, but I highly doubt that tiles will be what does it.

19. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

Nobody want's Lumia after Microsoft purchase.

38. papss unregistered

False there are many fans

43. SleepingOz unregistered

Nobody really wanted it before too..

46. papss unregistered

You mean you.. You are not everybody bit I expect no less from any fandroid.. Its the mentality of the group

53. Dastrix unregistered

Cool story bro. Go kill yourself now.

66. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

You know, maybe if you'd had someone close to you die, you wouldn't be so quick to throw around language like that. Reported, and sad that it took 4 hours for someone to do so.

44. corporateJP

Posts: 2458; Member since: Nov 28, 2009

"Nobody want's Lumia after Microsoft purchase" Count me in on that list. I bought Nokia's because they were Nokia's. No worries, MS has a wonderful track record when it comes to acquisitions. ;)

12. XperiaFanZone

Posts: 2282; Member since: Sep 21, 2012

Not for long. They'll rise again.

31. ihavenoname

Posts: 1693; Member since: Aug 18, 2013

How many times I've heard that? Too many. And result is this.

9. rangaha

Posts: 86; Member since: Dec 05, 2013

Nokia wasted too much time trying to come up with ways to throw petty jabs at other firms over Twitter

32. ihavenoname

Posts: 1693; Member since: Aug 18, 2013

That's no Nokia. That is Microsoft trying to be clever. And failing.

7. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Samsung and Apple sure are making sure they're the top dogs and aren't going to let anyone stop them.

30. ihavenoname

Posts: 1693; Member since: Aug 18, 2013

When looking these stats, at least Nokia and Microsoft won't be hurting them.

49. Dastrix unregistered

I wouldn't be so sure if I were you. M$ makes more money off Android than HTC, just saying.

6. itsdeepak4u2000

Posts: 3718; Member since: Nov 03, 2012

Blame MS and somewhat Nokia too.

4. biagnosis

Posts: 106; Member since: Nov 19, 2012

release Nokia Normandy!!!

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.

2. AfterShock

Posts: 4147; 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: 4147; 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.

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