Nokia squeezes tiny profit in third quarter
posted by Victor H. / Oct 29, 2013, 9:36 AM
Nokia’s Devices and Services division however remained in the red in the third quarter recording a loss of €86 million ($118 million). The currently loss-making Devices and Services is the exact Nokia division Microsoft is planning to acquire early next year if the deal gets authorities’ approval.
Interestingly, if you take out the phone-making part of Nokia, the remainder of the company comprised of the Nokia HERE maps effort and the NSN network equipment provider is actually profitable. Those two divisions are the part of Nokia that will remain in the hands of the Finns after the Microsoft deal.
Otherwise, we’ve already broken the news for you. Nokia sold a record 8.8 million Lumia Windows Phone based smartphones in the last quarter, but the majority of them were the extremely affordable Lumia 520 so the average selling price for its smartphones is not all that high.
Nokia’s other backbone, the feature phone business, has declined steeply in the last few quarters as affordable phones that runs on the proprietary Series 40 platform have less appeal to buyers that mostly crave smartphones. Nokia’s Asha feature phone lineup is the reason why those numbers have not slumped even lower. By the way, do not get fooled by Nokia calling Ashas a ‘smartphone’, the company itself counts them as feature phones in its financials.
What does the future hold for Nokia and how will it do in the hugely important Holiday quarter? Let us know your thoughts below.
source: Nokia (PDF)
Posts: 3535; Member since: Dec 21, 2012
Poor little cat in the picture...
posted on Oct 29, 2013, 9:40 AM 11
Posts: 225; Member since: Oct 10, 2013
Number does not seem so good for them while sammy selling 1Million devices Per day.
posted on Oct 29, 2013, 9:52 AM 5
Posts: 188; Member since: May 21, 2013
If you thinking in terms of Nokia's future then the numbers does not matter because they are selling the devices division which is making losses every quarter. But they are more profitable from other divisions.
posted on Oct 29, 2013, 10:17 AM 0
Posts: 396; Member since: Nov 13, 2012
Don't think anyone's interested in the article. The photo though.........Liked, +1'd and Followed!!!
posted on Oct 29, 2013, 10:03 AM 2
Posts: 949; Member since: Oct 30, 2012
Victor, are you asking if WP will continue to increase in sales, or are you asking if Nokia will survive and prosper? The answer to both questions is "YES", although it should be obvious that the main reason Nokia has been confined to low end prosperity (aka 520/521 sales) is because Microsoft dragged it's feet for providing support for Quadcore and 1080p displays. Nokia can survive with just NSN and HERE, plus their mighty patent porfolio, but 7 billion for D&S is starting to look mighty cheap. Perhaps it's time for a Microsoft competitor to make a different (and increased) counter offer?
posted on Oct 29, 2013, 10:05 AM 2
Posts: 1026; Member since: May 27, 2011
The question is more about Nokia. I find it hard to imagine that someone else than Microsoft would be willing to undo what Elop did with Windows Phone and fully transition Nokia to Android. Many people would love that, though.
posted on Oct 29, 2013, 10:16 AM 1
Posts: 949; Member since: Oct 30, 2012
It's too late for Nokia to try it's hand at Android; I think they would have been more successful if they had adopted the OS early, but the time for doing that is long past. However, Microsoft still needs to obtain Nokia's D&S in order for the WP platform to survive. Another bidder could wipe out WP OS in a single stroke, and avoid potential future competition, if they were willing to make a better offer to Nokia's disgruntled shareholders... Tim Cook to the rescue? ;o)
posted on Oct 29, 2013, 10:44 AM 0
Posts: 4744; Member since: Jan 28, 2011
"Devices and Services is the exact Nokia division Microsoft is planning to acquire early next year....if you take out the phone-making part of Nokia, the remainder of the company comprised of the Nokia HERE maps effort and the NSN network equipment provider is actually profitable." So tell me again how this potential deal is different from Motorola divesting Mobility from the rest of the company, only to have it quickly snatched up by Google? Some Nokia fans here have gotten very defensive at the notion of MS "buying Nokia."
posted on Oct 29, 2013, 11:08 AM 0
Posts: 14; Member since: Oct 29, 2013
There are loads of Nokia fans all over the world, which they will migrate from Samsung to Nokia! Even I would love to own a Nokia Android device. Nokia it's still not late to migrate to Android™ Why not make 2 versions of the Lumia 920,925,928 for Android and Wp, and see which sells the most? Defiantly Android, cause Nokia Symbian was an Linux open source platform. ™
posted on Oct 29, 2013, 6:37 PM 1
Posts: 3576; Member since: Jul 06, 2013
Two years from now you'll still be saying "Nokia please❕ Nokia please❕❕❕ It's not too late❕❗❕❗ For the love of god make a Android phone❕❗❗❗❕❗❕"""" Meanwhile more, and more people will be enjoying Lumia devices...
posted on Oct 29, 2013, 9:04 PM 0
Posts: 12; Member since: May 27, 2013
These sales numbers shure are small compared to what they used to sell. Back in the Day just single models like Nokia 3310sold way over 100 million units(numbers that even Samsung can only dream). But now they can't get to 100 million over all phone sales in 1 quarter.
posted on Oct 29, 2013, 7:03 PM 0
Posts: 1612; Member since: Jan 16, 2012
That's because it wasn't a super pricey smartphone. Nokia still sells many millions of dumbphones, but as for you saying Samsung can only dream of doing that... They are rumored to have sold 120 million this past quarter.
posted on Oct 29, 2013, 7:42 PM 0
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