Nokia Q2 report: more Lumias sold, less money made

Nokia announced the Q2 financial results and numbers are red all over. Net sales and operating profits are down for Nokia as a whole and its core, Devices & Services. Actually, the only division reporting a positive IFRS operating profit is Nokia Siemens Networks.



It's not all bad news - volumes of Lumia sales increased 32% quarter on quarter to 7.4 million units, up from 4 million for the same quarter last year. That's below analysts' expectations of 8.1 million, which has sent Nokia stock down almost 4% at the time of writing.

The Lumia 720 and Lumia 520 (the world's most popular Windows Phone handset) are two of the main drivers behind the growth. These are mid-range and entry level phones respectively, which lead to a decrease in average selling price by 4% to 151 (no Symbian sales counteracted that somewhat as Symbians were cheaper than Lumias).

Year on year the smartphone sales are down from 10.2 million units, but a large portion of that is Symbian sales which went from 6 million in Q2 2012 to close to zero in Q2 2013. Also, net sales for Smart devices are down 24% year on year.



Nokia's featurephone business still rakes in a good deal of money (more than Smart Devices), but net sales are down 39% year on year as volumes dropped 27%. Nokia shipped 53.7 million feature phones, with 4.3 million of them being Ashas. Nokias ordinary keypad phones that cost above 30 have declined. The whole feature phone segment is really feeling the heat of ever-cheaper low-end smartphones.

Regionally, things aren't great either net sales declined by a quarter year on year in Nokia's strongest market, Europe, and a whopping 57% in China. Other regions are down as well, even Nokia's smallest market, North America.

Nokia's HERE maps also saw a decline in net sales year on year, even though external sales went up. Most of that is due to higher sales to vehicle customers (providing map data for cars' built-in navigation) and less due to sales of Nokia devices.

Nokia Siemens Networks posted a profit for the fifth quarter in a row. Small profit, but still it's the only division that did. NSN is a 50/50 joint venture between Nokia and Siemens, but Nokia has agreed to buy Siemens out for 1.7 billion (1.2 billion in cash, 0.5 billion as a loan from Siemens to be paid in a year).

As for next quarter, Nokia expects Devices & Services to be in the red again, but with higher net sales due to more Lumia shipments.

You can get more details and numbers from the full report (PDF).

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Nokia Q2 report: more Lumias sold, less money made - reader comments

  • NOK Stock Fan

The good thing is NOK stock has been holding pretty steady between 7.75 and 8.10 which is not a major change. stock price source:http://investorshangout.com/board/52058/N okia-Corporation-NOK

  • Reply
  • 2013-12-08 02:51
  • 4w25
  • sammy

A lot of subscriber waiting NOKIA TABLET size model, then we can satisfy to use the unit.

  • Reply
  • 2013-08-19 04:17
  • Hkqt
  • anamyas

woild love to use meego again...after years of using Nokia symbian, and wiping a tear at its expected death, i think i howled when meego died as well. After playing wiht the wp8 phone and trying to convince myself to buy one.....ive decided to wait f...

  • Reply
  • 2013-08-13 23:24
  • 3aNs