Nokia Sells-In One Millionth Windows Phone Smartphone

Nokia Ships More Smartphones than Expected, Reports $1.2 Billion Loss

by Anton Shilov
01/26/2012 | 03:31 PM

Nokia Corp. on Thursday said that it had sold-in (shipped to retailers, operators, etc.) “well over” one million of Lumia smartphones which use Microsoft Windows Phone 7.5 “Mango” operating system. But while the company generally sold more smartphones than expected, it still reported a massive loss for the Q4 of 2011.

 

In the fourth quarter of 2011, Nokia sold 93.9 million feature phones, 19.6 million smartphones, or 113.5 million mobile devices in total. Generally, it was believed that Nokia would sell 18 million of smartphones, hence, Nokia beat the estimates by a tiny margin. It appears that the “tiny margin” was driven by the launch of the first Nokia smartphones running Windows Phone 7.5 “Mango” slightly ahead of schedule.

Perhaps, it is not bad for Nokia to sell 19.6 million of smartphones, including “well over” a million of Windows Phone-based handsets. However, considering on numbers reported by Apple, who sold 37.4 million of iPhones in Q4 2011, Nokia’s results look very pale, especially keeping in mind that Apple’s phones are much more expensive than Nokia’s.

Although officially Nokia Lumia handsets went on sale in November, the “Mango” smartphones were absent from many markets even in Europe and therefore it is hard to estimate whether the launch of Lumia was actually a success. The lion's share of Nokia's smartphones sold  were still powered by Symbian operating system. Generally, it is clear that two major handicaps for Lumia is Windows Phone operating system itself as well as low-performance microprocessor, hence, it is hard to imagine that Lumia will become a success already in 2012. But Nokia itself remains optimistic.

“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,” said Stephen Elop, chief executive officer of Nokia.

Net sales of Nokia in Q4 2011 were €10.005 billion ($13.108 billion), about 21% lower than in the same period a year before. The company lost whopping €954 million ($1.249 billion), whereas in the fourth quarter of 2010 its profit was €884 million ($1.158 billion). For the whole year Nokia earned €38.659 billion ($50.649 billion), a 9% annual drop, and lost €1.073 billion ($1.405 billion), compared to €2.07 billion ($2.712 billion) profit in 2010. Average selling prices of smartphones and feature phones in 2011 dropped year-over-year.