Nokia Reports Another Massive Loss, Sales of Smartphones Drop 63% Year-over-Year

Shipments of Nokia Lumia Collapse Quarter-over-Quarter

by Anton Shilov
10/18/2012 | 10:01 AM

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.