GSMArena.com GSMArena.com

Tip us

1.5m
109k
RSS

EV

Merch

Log in

Login

I forgot my password
Sign up
  • Home
  • News
  • Reviews
  • Videos
  • Featured
  • Phone Finder
  • Deals
  • MerchNew
  • Coverage
  • Contact
ADVERTISEMENTS

Disappointing Q2 for Nokia, set to launch first WP7 phone this year

  • Post your comment
  • Comments (176)

21 July, 2011

Nokia

Nokia just announced their Q2 financial results - sales volumes decreased and the company posted an operating loss of nearly half a billion euro. On the up side, IP royalty payments went into Nokia's pocket, to the tune of €430 million.

Net sales of the Devices & Services department of Nokia decreased 20% Year-on-Year (YoY), down to €5.5 billion. Of that, feature phones pulled in €2.55 billion (20% down YoY) and the smartphones made €2.37 billion (down 32% YoY).

The company as a whole (including Nokia-Siemens Networks and NAVTEQ) has €9.26 billion in net sales (down 7% YoY) and an operating loss of €487 million.

The Average Selling Price (ASP) remained mostly unchanged since last year's Q2 - overall it was €62 (up from €61), smartphones getting €3 pricier on average (€142 ASP for Q2 of 2011) while feature phones' ASP fell a euro to €36.

It was the lower shipping volumes that reduced sales. Nokia shipped 20% fewer devices overall (88.5 million in total, compared to 111 million for Q2 2010). The European, Asian-Pacific and Chinese markets saw significant reductions in unit volumes - about 6-8 million devices less were shipped this quarter compared to the year-ago quarter.

Nokia's smartphones aren't doing too hot, taking a 31% decrease in shipment volumes and their gross margin for Q2 2011 went down to 25.7% (from 32.2% in Q2 2010).

Nokia introduced a new platform, MeeGo, with the Nokia N9 and they've started shipping the first Symbian Anna phones this quarter plus they've started shipping the Symbian^3 handsets with Anna, but that didn't help much as there was strong pressure from competing smartphone platforms, especially in Europe and China.

Feature phone shipments fell 16% YoY. Dual-SIMs were in high demand, though those launched late in the quarter, which reduced their impact. QWERTY-packing feature phones were also strong performers.

During Q2 of 2011, Nokia outsourced Symbian's development to Accenture and 2,800 Nokia employees will transfer to Accenture in October. Also, Nokia's global workforce will be reduced by 4,000 by the end of 2012. This is all part of Nokia's cost reduction plans.

Looking to the future, CEO Stephen Elop says they've received "optimistic" responses to their Windows Phone 7 developments. Starting this year, they will do "a sequence of concentrated product launches in specific countries".

He also reaffirmed that Nokia knows how to defend its intellectual property (€430 million in royalties from unnamed companies are proof of that) and while this quarter's results were disappointing, their plans for the long term are going well.

You can check out the full report here (Note: PDF file), where you'll find plenty more numbers of Nokia's performance during Q2.

Source (PDF)

Related articles
  • Nokia and Samsung extend cross-license patent agreement Nokia and Samsung extend cross-license patent agreement
  • Nokia C12 launches with Android 12 Go Edition, 6.3" display Nokia C12 launches with Android 12 Go Edition, 6.3" display
  • Nokia X10 and X20 start receiving Android 13 Nokia X10 and X20 start receiving Android 13
  • Nokia confirms Android 13 is coming to five more phones Nokia confirms Android 13 is coming to five more phones

Reader comments

R
  • Rollindice
  • LBH
  • 24 Jul 2011

I definitely agree with you there bro, i believe alot of people are reluctant to try another OS, actually trying different mobile OS you'll be sure to see than WP7 is pretty neat alongside it's Mango features we've seen online also. Let's just h...

  • Reply
D
  • AnonD-1131
  • kJX
  • 23 Jul 2011

The Board of Directors are the ones who put Elop in there. They liked Elop's ideas and he's the right man for the job. Blame the previous CEO and his incompetence for Nokia's downfall. Elop is just doing what is practical and he's trying to save N...

  • Reply
L
  • Lubba
  • ECa
  • 23 Jul 2011

I'm not sure what your grudge is against nokia or MS and i really don't care. I myself don't care about nokia, but i do admire wp7 OS for what it has or had offered me, unlike iOS or android. I'm also the kind that doesn't run to and buy a product ...

  • Reply
  • Read all comments
  • Post your comment
Total reader comments: 176

ADVERTISEMENTS

Phone finder

  • Samsung
  • Apple
  • Huawei
  • Nokia
  • Sony
  • LG
  • HTC
  • Motorola
  • Lenovo
  • Xiaomi
  • Google
  • Honor
  • Oppo
  • Realme
  • OnePlus
  • vivo
  • Meizu
  • BlackBerry
  • Asus
  • Alcatel
  • ZTE
  • Microsoft
  • Vodafone
  • Energizer
  • Cat
  • Sharp
  • Micromax
  • Infinix
  • TCL
  • Ulefone
  • Tecno
  • Doogee
  • Blackview
  • BLU
  • Panasonic
  • Plum

All brands Rumor mill

ADVERTISEMENTS

Top 10 by daily interest

  Device Daily hits  
1.Samsung Galaxy S23 Ultra78,579
2.Samsung Galaxy S2337,377
3.Samsung Galaxy S23+22,426
4.Samsung Galaxy S22 Ultra 5G21,731
5.Samsung Galaxy A14 5G19,835
6.Oppo Reno8 T19,474
7.Apple iPhone 14 Pro Max17,070
8.Apple iPhone XR16,947
9.Samsung Galaxy A53 5G16,794
10.Apple iPhone X15,504

ELECTRIC VEHICLES

Zeekr X is the company's third electric car, design revealed Zeekr X is the company's third electric car, design revealed Volkswagen ID.4 will be featured in Marvel's Ant-Man and The Wasp: QuantumaniaPolestar 3 with LiDAR is now available to order, Polestar 5 will have LiDAR too
ADVERTISEMENTS

Home News Reviews Compare Coverage Glossary FAQ RSS feed Youtube Facebook Twitter Instagram

© 2000-2023 GSMArena.com Mobile version Android app Tools Contact us Merch store Privacy Terms of use Change Ad Consent Do not sell my data