Sales of Latest Nokia Lumia Windows Phone 8 Handsets May Be Lower Than Projected – Analyst

Initial Shipments of Nokia Lumia 820 and 920 May Be Constrained

by Anton Shilov
12/12/2012 | 06:33 PM

Since Nokia Corp., unlike Apple and Samsung Electronics, its two major rivals these days, does not release sales data for its flagship smartphones, it is hard to estimate how successful is the latest lineup of devices based on Microsoft Corp.’s Windows Phone 8 operating system actually is. Some analysts said back in November that the demand for the handsets exceeds supply. This week other analysts said that actual sales of Lumia 820 and 920 may be relatively low.

 

“Back in mid-November, Bloomberg cited the rise in Nokia shares as being driven by reports that the Lumia 920 had seen strong demand in Germany. While this may have been the case for a few thousand initial units, our checks indicate that retailers in Germany say they are only now beginning to receive the 920 across normal sales channels, and the volumes being received are still very small,” wrote James Faucette, an analyst with Pacific Crest, in a note to clients, reports Tech Trader Daily.

According the analyst, there is initial pent-up demand that is resulting in stores selling out of initial shipments in a few days. Nevertheless, this is largely to do with the low shipment volumes rather than surprisingly strong demand. The observers estimate that the batches the stores receive from Nokia are small, considering the lack of massive backorders, the demand is also not that that high.

“We believe a somewhat similar dynamic is likely going on at AT&T for the 920. Based on the inventory on hand, we believe AT&T is selling only 10 to 15 thousand Lumia 920 devices per week at the moment. We believe stores are able to sell available stock in a few days; however, we found most stores getting only a handful at a time. We estimate that the company is tracking toward shipping roughly one million new Windows 8 products in the December quarter, while it looks likely to sell-through roughly half of those units, based on current run rates,” said Mr. Faucette.

The analyst added that relative to a year ago, Lumia volumes are “marginally better on a run-rate basis,” mostly due to the availability of older Lumia models and lower price points, reports The Tech Trade.

“On a like-for-like basis (new 920 and 820 in 2012 versus 800 in 2011), we estimate that sales are similar or even slightly lower year-over-year,” said the analyst.