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

Posted: , by Daniel P.

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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:

In the war of ecosystems, clearly there are some strong contenders already on the field. And with Lumia, we have demonstrated that we belong on the field. Our specific intent has been to establish a beachhead in this war of ecosystems, and country by country that is what we are now accomplishing. To date we have sold well over 1 million Lumia devices. From this beachhead of more than 1 million Lumia devices, you will see us push forward with the sales, marketing and successive product introductions necessary to be successful. We also plan to bring the Lumia series to additional markets including China and Latin America in the first half of 2012.

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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posted on 26 Jan 2012, 07:09 3

1. darac (Posts: 2156; Member since: 17 Oct 2011)

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

posted on 26 Jan 2012, 09:00 2

6. miksu (Posts: 2; Member since: 26 Jan 2012)

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

posted on 26 Jan 2012, 09:18

7. DIYguy (Posts: 190; Member since: 27 Feb 2011)

Just wondering Miksu do you happen to be finnish?

posted on 26 Jan 2012, 07:45 4

2. rex1213 (Posts: 77; Member since: 29 Jul 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".

posted on 26 Jan 2012, 12:38 1

8. -RVM- (Posts: 331; Member since: 19 Oct 2011)

N8 was realeased on the last day of October.

posted on 26 Jan 2012, 07:51 2

3. itiswhatitis (Posts: 423; Member since: 23 Jan 2012)

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

posted on 26 Jan 2012, 08:02 1

4. JSern (Posts: 282; Member since: 22 May 2011)

Nope, we all did

posted on 26 Jan 2012, 13:33

10. -box- (Posts: 3991; Member since: 04 Jan 2012)

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

posted on 26 Jan 2012, 08:13

5. ryq24 (Posts: 771; Member since: 17 Oct 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.

posted on 26 Jan 2012, 13:23

9. -box- (Posts: 3991; Member since: 04 Jan 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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