Nokia squeezes tiny profit in third quarter

Nokia squeezes tiny profit in third quarter
Nokia is selling a record amount of Lumia handsets, but it continues posting middling quarterly financial results. This latest July to September trimester, the Finnish company squeezed out a tiny operating profit €118 million ($162 million) on a revenue that stayed largely flat at €5.66 billion ($7.8 billion).

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. 

Sales in the United States also recorded a bit of an unexpected bump going up to 1.4 million largely thanks to that same Lumia 520 being offered for the extremely affordable $99 as a pre-paid phone on AT&T and T-Mobile.

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)

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27 Comments

1. yadu004

Posts: 72; Member since: Apr 26, 2013

Nice photo.. lol

4. SAYED-EJAZ

Posts: 225; Member since: Oct 10, 2013

Realy that photo matching with title of this article..so cute cat ;)

2. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

Poor little cat in the picture...

23. akki20892

Posts: 3902; Member since: Feb 04, 2013

Want to see sales graph of nokia between 1997 to 2008. Just imagine what graph will looks like, I guess tallest graph you never seen before. All above 100 millions.

3. SAYED-EJAZ

Posts: 225; Member since: Oct 10, 2013

Number does not seem so good for them while sammy selling 1Million devices Per day.

11. sri_tech

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.

5. scriptwriter

Posts: 396; Member since: Nov 13, 2012

Don't think anyone's interested in the article. The photo though.........Liked, +1'd and Followed!!!

18. Stuntman

Posts: 843; Member since: Aug 01, 2011

I clicked on this article only because of the cat photo.

6. UrbanPhantom

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?

10. Victor.H

Posts: 1076; 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.

12. UrbanPhantom

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)

7. londoner

Posts: 36; Member since: Sep 12, 2013

Nokia have been doing very well. The problem is the wp platform that is not seducing enough new cosstumers.

8. Taters

Posts: 6474; Member since: Jan 28, 2013

That picture is fitting because cats are awesome. Nokia not so much.....

9. Santi_Santi unregistered

don't care 'bout Nokia, the kitty is so cute ♥

13. roldefol

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."

14. sergiobr

Posts: 718; Member since: Feb 25, 2013

Nokia is just selling cameraphones with WP, while the others ... perfect OS + cameraphones, thta´s the difference.

15. _PHug_

Posts: 482; Member since: Oct 11, 2011

Came here for the cat picture. Gave thumbs up to everyone else who came here for the cat picture. Zero interest in a camera with phone functionality in "please notice me" colors.

16. rodneyej1

Posts: 3576; Member since: Jul 06, 2013

Windows Phone Is Awesome❕ Lumia Devices Are Awesome❕.. End of story❗

17. dmsrfl

Posts: 76; Member since: Sep 21, 2012

I'm only here because of the photo.... LOVE IT

19. .TROLL

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. ™

22. akki20892

Posts: 3902; Member since: Feb 04, 2013

True..

24. rodneyej1

Posts: 3576; Member since: Jul 06, 2013

Lol❕...You're in the dictionary.. You're a special person.

25. rodneyej1

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...

20. Fade.

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.

21. sprockkets

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.

26. Eclectech

Posts: 355; Member since: May 01, 2013

That cat is too cute ...dang what was this article about again?

27. steelicon

Posts: 318; Member since: Apr 02, 2011

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