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Nokia Corp. on Thursday reported business results for the second quarter of 2012. The company managed to increase sales of Lumia smartphones powered by Microsoft Corp.'s Windows Phone 7.5 operating system to four million units a quarter. It also improved sales of its mobile phones. Unfortunately, Nokia continued to lose loyal Symbian clients who in their majority are unwilling to transit to WP 7.5 platform.

During the Q2 2012, Nokia succeeded in increasing shipments of Lumia lineup of smartphones to four million units a quarter, up from two million in Q1 2012, bringing total life-to-date shipments of Lumia to seven million. But as it appears, increase of Nokia Lumia sales does not mean that customers are transiting from Symbian to Windows Phone as the company's sales of smartphones declined to 10.2 million in Q2 2012 by 39% from the same period in 2011 and by 14% from the prior quarter. Average selling price of a Nokia smartphone increased to $151, up 7% annually and 6% sequentially.

So, even though the share of Lumia is increasing, the general share of Nokia on the smartphone market is declining at a very rapid pace. The even more frightening situation is that Nokia is clearly losing its very loyal customers, those, who have used Symbian-based smartphones for many years. It is clear that many of them do not want to switch to Windows Phone platform and therefore prefer Apple iPhone or Google Android-based devices. The latter fact means that the majority of Symbian user base - there are still 300 million of Symbian owners worldwide, according to Tomi Ahonen, one of the most renowned experts in the mobile device world - will not get back to Nokia. In fact, considering that Nokia sold 28 million smartphones in its record quarter back in Q4 2010 and that smartphones are typically used for 2 - 2.5 years, there will be no less than 18 million (likely more) of new customers acquiring Apple iPhone or Google Android-based smartphone in the next two quarters.

Nokia managed to sell 73.5 mobile phone units in the second quarter, up 2% annually and 4% sequentially. Unfortunately, average selling price of a mobile phone declined to $31, down 14% from the same period last year and 6% from the previous quarter.

Nokia net sales in Q2 2012 were €7.5 billion ($9.197 billion), up from €7.4 billion ($9.074 billion) in Q1 2012, but down 19% from €9.275 billion ($11.374 billion) in the same period last year. The company lost €826 billion ($1.012 billion) in Q2 2012, down from €1.34 billion ($1.643 billion) in Q1 2012, but up from €487 million ($597.2 million) in Q2 2011.

Tags: Nokia, Lumia, Windows Phone, Symbian, iPhone, iOS, Android, Microsoft

Discussion

Comments currently: 4
Discussion started: 07/19/12 09:58:51 PM
Latest comment: 07/24/12 09:30:43 AM
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Some of these stats may look like facts, but there's quite a bit of editorializing going on as well. Symbian is dead, and it isn't because of Nokia switching to Windows Phone. If Nokia stuck with Symbian, they would be on the same road as RIM, though Nokia's road might run a little longer.

If Nokia didn't adopt Windows Phone, those Symbian customers *still* would have left--after all, Nokia still sells Symbian, and is even continuing to introduce new models. At least they are retaining some of those customers with Windows Phone--and it's a growing number. In fact, they've had consistent 200% quarter-over-quarter growth since the introduction about 8 months ago--and that growth rate is much higher than the iPhone's initial adoption rate, even in a much less competitive landscape and with Apple's rabid fan base that will buy anything they make as soon as it's released.

If you looked at Nokia as two separate companies--and I think it's arguable that you should--the picture is quite different. "Nokia Symbian" is tanking. "Nokia Windows Phone" is experiencing explosive growth. If "Nokia Windows Phone" were the only company that existed, they'd be the new hot company everyone's watching.
0 1 [Posted by: bluvg  | Date: 07/19/12 09:58:51 PM]
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Most people who buy WinCrap probably do not get the difference. They buy Nokia. And those who know about WinCrap and that it comes from Microsoft don't want it.
0 1 [Posted by: Zingam  | Date: 07/21/12 12:11:11 PM]
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Obviously u have never used a windows phone... it works flawlessly...
Nokia makes really good phones with the sort of quality samsung cannot reproduce, their galaxy S's line which is top of the range is made from cheap plastic, even the razr puts a better effort into making high quality phones.

Windows Phone 7.5 is already a great system, windows 8 is even better, too bad companies aren't working on drivers for an upgrade, I am still getting a windows 8 phone but this time it will be a nokia.
0 0 [Posted by: marciocattini  | Date: 07/24/12 09:30:43 AM]
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2. 
This is the typical attitude to Finland. I read it only at the time Sami Ahonen was named behind these opinions. But the whole tone of the text is ridiculously dichotomous and judgmental. I knew that it can only be done by a Finnish guy who comments on Nokia affairs. There is an attitude of fear that if Nokia collapsed, the Finnish economy would end up very badly. And the Finns usually can't detect such emotional undertones nor opt them out. They may lose themselves in procrastination and complaint. They are clumsy like that. Can you get someone objective behind this?
0 0 [Posted by: TeemuMilto  | Date: 07/20/12 07:56:59 AM]
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