Sales of Nokia Lumia Up 32% Quarter-Over-Quarter, Still Trailing Market Leaders

Sales of Nokia Lumia Smartphones Finally Start to Improve as Nokia Discontinues Symbian-Based Products

by Anton Shilov
07/23/2013 | 08:30 PM

Nokia Corp. last week announced its financial results and revealed that sales of Lumia smartphones were up 32% quarter-over-quarter and that its smartphones in general are now better sellers than they were in the past year. Besides, the company reported zero sales of Symbian-based smartphones, an important milestone for the company. Still, the question remains whether Nokia can actually regain its lost sales and smartphone market share.

 

Nokia Lumia Q2 volumes increased 32% quarter-on-quarter to 7.4 million units, reflecting strong demand from customers for a broadened Lumia product range. Average selling price of a Nokia-branded smartphone was $157, a 4% increase quarter-over-quarter, but an 18% decrease from the same quarter a year ago. Mobile phones Q2 volumes decreased 4% quarter-on-quarter to 53.7 million units, but demonstrated some signs of recovery in the latter part of the quarter. ASP of a mobile phone was $26, down 16% sequentially and 7% year-over-year.

"We are pleased to report an underlying operating profit for the fourth consecutive quarter on a group level. We benefited from another strong performance at Nokia Siemens Networks, which continued to deliver well against its focused strategy. With our recent announcement to purchase Siemens' 50% stake in Nokia Siemens Networks, we believe we will create value for Nokia shareholders and look forward to strengthening Nokia Siemens Networks as a more independent entity,” said Stephen Elop, chief executive officer of Nokia.

Even though sales of Nokia branded smartphone grew 21% sequentially and Nokia discontinued the last remaining Symbian-based products, 7.4 million of smart devices per quarter is a rather low result for today and is considerably below of Nokia’s historical levels.

Nokia’s market share is not improving. Moreover, with very slow growth of Windows Phone market in general, it will be extremely hard for Nokia catch up not only with Samsung, but even Apple, which has passed the peak sales of iPhone as we know it.