Nokia's phone business earns it $1.16 billion in 2011, sells "well over" a million Lumia handsets

Nokia's phone business earns it $1.16 billion in 2011, sells
Nokia just released its financials for the last quarter of 2011 and for the whole year, and it ended up with about $1.4 billion loss.

That was actually not due to its phones business, which made $1.16 billion for the company, but from its Location & Commerce department (think NAVTEQ), and the Nokia Siemens Networks joint venture, which it has been looking to pawn off to the highest bidder in vain.

The company sold over a million Nokia Lumia 800 and 710 handsets, said the CEO Stephen Elop, which is in line with the latest analyst expectations:


Sales of Symbian smartphones and entry level handsets, while better in Q4 than in Q3, did not fare well overall, as was largely expected after the U-turn in strategy and the new direction with Windows Phone announced February last year. "In certain markets, there has been an acceleration of the anticipated trend towards lower-priced smartphones with specifications that aredifferent from Symbian’s traditional strengths. As a result of the changing market conditions, combined with our increased focus on Lumia, we now believe that we will sell fewer Symbian devices than we previously anticipated", comments Stephen Elop.

For the first quarter of 2012, Nokia expects to break even, plus/minus 2%, and has big plans for its newly created Location & Commerce division. While still operating at a loss, Nokia thinks it is well-positioned to provide location-based services for a fee to Windows Phones and various other mobile devices, capitalizing on the strength of NAVTEQ's mapping software. As far as Nokia Siemens Networks go, the company refrained from providing guidance, meaning that it will probably be the albatross on profits for a while. The company also didn't provide details about sales of its Nokia N9 MeeGo-based smartphone.

Nokia sold 113.5 million phones in Q4, of which 19.6 million were smartphones. That's 17% more smartphones than in Q3, which Nokia attributes to the broader availability of the Nokia N9, and the newly-released Lumia 800 and 710 handsets, as well as the usual holiday rush. The company ended up the year with about $7.4 billion in cash, which is a nice buffer until the Lumia handsets effect fully kicks in later this year.

The company also received $250 million in platform support from Microsoft.

source: Nokia (PDF)

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10 Comments

1. darac

Posts: 2156; Member since: Oct 17, 2011

so, a million-something units of two windows phones in three months? wow. yes I'm being ironic. it's symbian who saved the day for Nokia. man, what a mess of a company

6. miksu

Posts: 2; Member since: Jan 26, 2012

no, in a 1,5 months, from nov to dec, and in those few countries it was available. Thats not bad actually.

7. DIYguy

Posts: 190; Member since: Feb 27, 2011

Just wondering Miksu do you happen to be finnish?

2. rex1213

Posts: 77; Member since: Jul 29, 2011

Hmmmmm. As far as I can remember, the Nokia N8 sold about 4 million units within three months. The 2 Lumia handsets (800 and 710) sold just "well over a million handsets"?! While I agree that Lumia 800 and 710 was not released in October as did N8, I just can't ignore the fact that the total sales volume of the two Lumia handsets COMBINED just reached well over a million handsets. That's a TOTAL CATASTROPHIC FAILURE! Bring Meego and Symbian back to life you mad Flop(Elop)! That mad CEO Stephen Elop just came to Nokia only to give Ballmer the car keys to run Nokia indirectly. Once again, the Evil Empire (Microsoft) is driving Nokia down into its internally-used word called "Death Spiral".

8. -RVM-

Posts: 331; Member since: Oct 19, 2011

N8 was realeased on the last day of October.

3. itiswhatitis

Posts: 423; Member since: Jan 23, 2012

dont you guyz feel headache reading all the topics from phonearena or is it just me?

4. JSern

Posts: 282; Member since: May 22, 2011

Nope, we all did

10. -box-

Posts: 3991; Member since: Jan 04, 2012

No. I find it refreshing that it's not just speculative rumors about the next generation of iphones for once, or yet another article about low-sample-size statistics about iphone users and stuff

5. ryq24

Posts: 875; Member since: Oct 17, 2011

i really hope nokia will do better so it could put more pressure to other phone maker to build better phones at affordable price.

9. -box-

Posts: 3991; Member since: Jan 04, 2012

113.5 MILLION phones in Q4? That's more than a milion phones sold per day! Or was that a misprint and should read 113.5 phone sold thru Q4, as in all of 2011? Either way, that's still a lot of phones, and I believe, in terms of volume, Nokia is still #1.

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