Nokia Increases Sales of Lumia Smartphones to Four Million a Quarter

Sales of Nokia Smartphones Continues to Decline amid Transition to Windows Phone

by Anton Shilov
07/19/2012 | 05:19 PM

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.