Nokia's first quarter phone sales slumped 30%

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.


source: Nokia (PDF)

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87 Comments

77. AJagtiani

Posts: 466; Member since: Apr 24, 2014

Nokia will do great under Microsoft. I know it.

52. NokiaFTW

Posts: 2072; Member since: Oct 24, 2012

Lumia sales declined cuz of no real introduction of new phones in Q1 except the Icon, which was only in the States. Also, seasonal variation in the market played a part. Even Samsung's profits went down. Of course, all of the above will seem like an excuse to fandroid trolls as they just wait to pounce and hate on any WP article. Hate on guys, hate on.

53. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Don't forget the Nokia X, which was also launched this quarter. Nokia itself cited strong competition. The writing is on the wall: Windows Phone is not likely to be anything other than an "also ran."

54. AfterShock

Posts: 4147; Member since: Nov 02, 2012

Shill Detected!

72. NokiaFTW

Posts: 2072; Member since: Oct 24, 2012

Troll detected!

58. jroc74

Posts: 6023; Member since: Dec 30, 2010

All I will say is this.. Android grew 8% from last year in the US....with Samsung seeing a decline in global marketshare too.. This means Samsung isnt Android, they are good for each other. But....with no other OS to use so far.....Samsung needs Android alot more than Android needs Samsung....(just realized I forgot Samsung does WP....but we know how thats working out for them...) And some other Android phone(s) were also wanted from last year to now. Alot of things ppl pounce on and hate on are not being looked at in the big picture these days. Dont forget...Apple lost some global marketshare too....

59. jroc74

Posts: 6023; Member since: Dec 30, 2010

I will add this from the article: "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." So most of the loss could be from ppl realizing feature phones are just smartphones lite and are shifting away from feature phones. With some smartphones being cheaper, old models thats are still good by today's standards....with carrier plans having lower plan options...with pre paid carriers getting better......you might as well just get a smartphone.

61. nokia12

Posts: 610; Member since: Nov 19, 2013

Ok NokiaFTW answer this if you can.. why did Lumia Sales decline in Q4 2013 - which is the holiday quarter , the strongest quarter of the whole year .. where companies are expected to post stellar results, where market sales are just phenomenal .. why did Nokia declined instead of growing from previous quarter ?

65. NokiaFTW

Posts: 2072; Member since: Oct 24, 2012

Nokia expected a sales decline in Q4 2013. With the onslaught of 2 new iPhones, the Note 3 & the Nexus 5, Nokia had expected a sales decline. Still, analysts were impressed that Lumia sales didn't decline much and still managed to sell more than 8 million. Even Samsung and Android as a whole took a little hit in that period due to the iPhones. And coming back to this quarter, Nokia didn't release any new internationally available Lumia in these 3 months. Also, with the aggressive pricing of the Moto G, Lumia sales took a hit in some of Nokia's strongest markets. We can see the results for next quarter as they will tell the real story as to whether WP is growing or not since Nokia have announced 2 new handsets.

74. nokia12

Posts: 610; Member since: Nov 19, 2013

none of the analysts were impressed , everyone was shocked to see results lower than previous quarter while everyone was expecting growth.. secondly if android,IOS competition is the reason for declining sales then you yourself are admitting that windows phone is a failure in comparison to iOS and android.. Windows phone won't be successful if cannot take away sales away from android and iOS .. it will be a failure if cannot do that and it is precisely what happened.. and now after Nokia branding is removed sales will take a hit big time .. Future is dull for Windows phone not bright..

51. drazwy

Posts: 378; Member since: Jan 15, 2014

Well DUH! Thats what happens when you get stuck into exclusivity deals with carriers.

47. supratik1993

Posts: 13; Member since: Mar 16, 2014

Mediatek processors is Nokia's only hope to get back on the track in the emerging markets..... But Microsoft won't let them......

49. tasior

Posts: 265; Member since: Nov 04, 2012

There is no hope for Nokia is phone bussiness. MS bought them, haven't You heard? Nokia's hope now lies in maping services, and R&D. Not to mention we can hope, that MS ditches Nokia brand, alowing them to return in 2016...

44. AfterShock

Posts: 4147; Member since: Nov 02, 2012

WP=Wrong Phone WP=Worst Potential WP=Won't Party WP=Wet Poodle WP=Window Pains/Panes WP=Why Partake WP=Weak Position WP=Wireless Potato

43. jroc74

Posts: 6023; Member since: Dec 30, 2010

"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." I separated the last part for emphasis....This entire article is strange because WP grew so much after Nokia and their phones came on board...they have such a huge market share of the WP devices...and yet this happens. Just seen an article about the Lumia 1520 being $50 on contract...so lets not use the cheaper argument. Especially when it comes to the iPhone....because they really arent cheaper. Unless its a way older model. Some say some are easy to put down WP and Nokia....how about some WP, Nokia fans give Android...and iOS.... a lil credit..for being something many ppl want. And if....if...Nokia X sales are doing fine....some folks at Nokia will have to question some decisions they made... For real....the Nokia X might have been Nokia's Plan B if it does well.

42. Nexus4lifes

Posts: 303; Member since: Feb 13, 2014

This was my comment when i first tried the lumia 900... "NOKIA JOKeIA LUMIA"... That OS is was will be a jokEia...

34. jellmoo

Posts: 2701; Member since: Oct 31, 2011

Exclusives and poor region distribution sure as heck don't help. The newest device we have in Canada is the 1020, a niche device that came out last July. It is available on 1 of 3 of our main carriers (Rogers). Heck, my carrier (Bell) doesn't carry a single Nokia device. Until they release their flagships in such a way as the competition, where they have multiple carriers in a single region, they will remain little more than niche products with little to no penetration outside of their super low end devices.

31. Liveitup

Posts: 1798; Member since: Jan 07, 2014

Sure you don't like WP yet everyone you mentioned does, look at Tizen Homescreen, Tiles, look at BB10 Active frames, Tiles, Ubuntu and others can't fight the two larger platforms. You're right myself and others including the two biggest platforms like WP, not everybody wants an open OS, it has its drawbacks like being more virus prone. I wonder if people realize HTC fell 136% YOY, two consecutive quarters Samsung fell now, iOS fell judging by their reasoning it must be because Android and iOS sucks. I fear for the future of common sense.

36. AfterShock

Posts: 4147; Member since: Nov 02, 2012

Security through obscurity, WP. You said being open source would incur more viral issues, I don't think that's accurate at all. Linux does not seem to have a tenth of the viral issues that windows has. In mobile there may be more attempts against android then WP, because its hands down the os of choice for the majority, WP is not, an in fact has most of its sales figures based off of a 50-100$ phones by users not willing or capable of investing more or using online services that require user info an credit cards. Android gets tougher every day because of attacks, WP muddles along under a holy blanket of obscurity. Common sense, needs commonality, WP doesn't rate yet enough to warrant it. Dial a dopers phone of choice, period.

41. jroc74

Posts: 6023; Member since: Dec 30, 2010

Please dont mention open source OS vs closed source OS and viruses...when Microsoft is the creator of... ...Windows and Internet Explorer... While you're at it.....go look up Firefox when it started and security and compare that to now. Being popular automatically means you will get attacked more. How many viruses were targeting Palm within the last few years before it died? Exactly. The only closed source OS that can lay a claim to security is BB.

64. PBXtech

Posts: 1032; Member since: Oct 21, 2013

And how Chrome wins every year for being the most difficult to hack into. It's okay to like something, just don't be stupid blind to everything as a result. This guy is as blind as you can get.

66. jroc74

Posts: 6023; Member since: Dec 30, 2010

Didnt know that...interesting. Didnt you hear...open source is virus prone...

73. SamDroid unregistered

What OEM's do is put hte best in their phones. Its been happening in almost every manufacturer on anything from sandals to stuffed toys. If something works best with one manufacturer then the others constitute it into their own products to make them better. Its not copying, it s advancement. Yes, Wp might look great with its flat UI. But what other advantages does it offer over the others? You don't marry a girl just coz she's hot. Same thing here. I'd rather get Android coz you can turn the UI into anything, even Windows Tiles. And you're wrong when you say that Android gets more viruses, PA already covered that. From Jelly Bean and up Android is safer and actually more stable than other OS's. And yes, most OEM's profits fell but to tell the truth just a single OEM's profit is nearly double that of Nokia. We get that you like Nokia and WP but there is no use defending something that's decided to head South. Personally if Lumia 1520 ran on Kitkat I'd buy five of those beautiful mofo's. :D

75. thealphageek1

Posts: 942; Member since: Feb 02, 2013

BlackBerry 10 active frames are not like WP live tiles at all. And yes, I own a WP handset (Lumia 925) and 2 BB10 handsets (Q10 and Z10).

26. Liveitup

Posts: 1798; Member since: Jan 07, 2014

This is exactly why I dislike some Android fanboys. They are ready to pounce on every bit of negative and proclaim WP dead. They only want to see Android ultimately run on mobile devices alone. So much for competition. They start with the Tile interface bashing while Android OEM's are moving from Icons to Tiles. HTC looks like a Windows Phone not your traditional Android interface, Android is now flat everybody is now flat that is also part of the reason in my personal opinion for things slowing down, you can hardly tell the difference these days between a WP app and an Android , iOS app , why would people leave Android and iOS when they all are looking similar these days, the uniqueness is lost for most part before when Android and iOS used Skeuomorphism then Flat UI modern looks stood out, now they are with the OS are looking similar kinda felt this would happen. With so many OS dying off and have died people should welcome competition, its healthy for choices, when Android alone is around people will regret not having a different experience, we are humans after all.

27. nokia12

Posts: 610; Member since: Nov 19, 2013

we don't want Windows phone that's it .. we don't want closed ass OS .. sure we all like new innovation and we will welcome BB 10 , Tizen , Ubuntu OS and any new better OS... But Windows phone is not better at all... windows phone fans have smothered for 4 years for basic features, with paid apps which are free on other platforms , ... you like it you keep buying windows phone.. majority people don't like those tiles and what they can't even get rid of it ? so they don't buy it look at the numbers,... end of story..

40. jroc74

Posts: 6023; Member since: Dec 30, 2010

And just how many other Android UI's are using tiles....last time I checked Android was more than just HTC. And in all honesty....you really are hung up on the Flat design thing. Really...

46. tasior

Posts: 265; Member since: Nov 04, 2012

Hardly anybody likes WP, because it is a closed OS. Therefore it is direct competition for IOS not Android. We - the OS interested part of society - want to see more competition for Android not for IOS. Nokia has always been open. You had always been able to use whatever browser You wanted, to save whatever files You wanted, wherever You wanted. To send everything via whatever transfer technology You wanted. Even they motto was: Connecting people. So everything could be connected to everything, with no problem. That was their crucial functionality. And then came WP and for over a year You couldn't even send an mp3, between phones... The Windows Phone hatred is well earned, and Android Fanboism has nothing to do with it...

57. jroc74

Posts: 6023; Member since: Dec 30, 2010

This post needs to be repeated...along with some others.... Growing up all I knew was Nokia...and Motorola. This Nokia isnt the same Nokia I knew of before the iPhone and Android launched.

63. PBXtech

Posts: 1032; Member since: Oct 21, 2013

Can't +1 this enough.

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