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Nokia Corp. on Thursday reported financial results for the third quarter of 2012. Sales of the company's flagship Nokia Lumia smartphones based on Windows Phone 7 operating systems decreased by 27% quarter-over-quarter, whereas shipments of all Nokia-branded smartphones decreased by whopping 63% year-over-year. Shipments of mobile phones also dropped.

During the Q3 2012, Nokia shipped 76.6 million mobile phones, up 4% quarter-over-quarter (QoQ), but down 15% year-over-year (YoY). Average selling price of mobile phones were 3% lower than in the year ago quarter. The company also supplied 6.3 million of smartphones (including WP7-based and Symbian-powered), a dramatic 63% decrease from a year ago quarter, and also down 38% compared to Q2 2012. ASP of smartphones grew 3% QoQ and 18% YoY.

Since Nokia and Microsoft Corp. pre-announced Windows Phone 8 platform in June, sales of Lumia smartphones collapsed by 27.5% compared to the previous quarter and were only 2.9 million units and where still below shipments of Symbian-based devices. Once again, Lumia fails to outsell even Nokia's own Symbian smartphones, which means that Nokia has to work hard to increase popularity of the Windows Phone platform in general.

"As we expected, Q3 was a difficult quarter in our Devices & Services business. [...] We continued to manage through a tough transitional quarter for our smart devices business as we shared the exciting innovation ahead with our new line of Lumia products. In our mobile phones business, the positive consumer response to our new Asha full touch smartphones translated into strong sales. In Q3, our mobile phones business delivered a solid quarter with sequential sales growth and improved contribution margin," said Stephen Elop, chief executive officer of Nokia.

Nokia's revenue in the third quarter of the year were €7.239 billion ($9.486 billion), a decrease of 19% compared to the Q3 2011 and a drop of 4% from the prior quarter. Nokia's operating loss was €576 million ($754.79 million), lower than last quarter, but higher than in the same quarter in 2011.

Tags: Nokia, Lumia, Symbian, Windows Phone, Microsoft

Discussion

Comments currently: 7
Discussion started: 10/18/12 12:06:43 PM
Latest comment: 10/19/12 12:08:14 AM
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1. 
Nokia made a HUGE mistake for deciding not to support Android OS and instead siding with Microsoft and their executives' monopolistic vision of mobile world. Windows Phones are not going to succeed unless the Surface and other Win8-based tablets succeed, which, if so, will take a few years in order to build the same market share & apps portfolio that Android & iOS phones have now. I really hope the best for Nokia, I could not forget the quality of their products I enjoyed for years before this iOS/Android world ruled the mobile field.
1 0 [Posted by: texasti  | Date: 10/18/12 12:06:43 PM]
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Windows phone can thrive if they flood tv with advertisements that you can actually tell are for windows phone 8. Most microsoft ads are so bad you cant even tell what theyre advertising... The management already anounced they will see how windows phone 8 goes up to next spring, and then if its still a failure adopt android.
0 0 [Posted by: cashkennedy  | Date: 10/18/12 12:51:08 PM]
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When did they announce this? Do you have a link?
0 0 [Posted by: martinw  | Date: 10/18/12 03:51:39 PM]
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Sorry not an official anouncement but, generally its believed that the stock holders will oust Elop and pick someone who will promote both android and wp, if it doesnt turn around by spring 2013. http://www.xbitlabs.com/n...to_Turn_Nokia_Around.htmlThere was also an article a month or two ago that nokia had a small team working on possibilities if wp didnt work out > which would most likely just be people ensuring they can quickly switch to android on existing wp hardware next year if necessary.Dont get me wrong, I think windows phone is way better then android, but Nokia appears to be prudent and stephen elop sane enough for them to realize there will most likely be a shakeup and a switch to supporting android in late 2013 if things do not turn around by spring 2013.
0 0 [Posted by: cashkennedy  | Date: 10/18/12 04:58:07 PM]
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2. 
They knew--and told in advance--that it was going to be a bad quarter. Windows Phone 8 devices were announced and everyone found out that 7/7.5 devices wouldn't be upgradeable. That pretty much sealed their fate for the quarter. However, let's see what happens going forward.
0 0 [Posted by: bluvg  | Date: 10/18/12 02:36:38 PM]
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3. 
Unless they kick the butt of Elop, Nokia will keep drowning.
0 0 [Posted by: vello100  | Date: 10/18/12 02:41:57 PM]
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4. 
I think people are just waiting for WP8 since it's just around the corner - That's why no-one's buying any of the current Lumias.
0 0 [Posted by: pckitty4427  | Date: 10/19/12 12:08:14 AM]
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