Nokia reports loss as Windows Phone sales are off to okay start

Nokia said it has sold well over 1 million Windows Phones to date

Nokia's sales dropped and losses increased during the fourth quarter, as sales of Symbian-based smartphones suffered and Windows Phones got started.

The most anticipated data in the report concerned Nokia's sales of Windows Phones. But Nokia shared few details, only saying that it has "sold well over 1 million Lumia devices to date."

The company reported sales of €10 billion (US$13.2 billion), down 21 percent year-on-year, making a net loss of 1.07 billion, compared to a net profit of €745 million a year earlier.

Analysts had expected unit sales of about 1 million Nokia Windows Phones.

Nokia's massive marketing investment promoting the Nokia Lumia 800 contributed to shipping better than expected volumes, said Francisco Jeronimo, research manager at IDC.

"Well over" means about 1.5 million units, and that is an okay start, according to Carolina Milanesi, research vice president at Gartner.

"I think the 1 million mark is the important bit. We now need to wait to see the full power when more countries are added. The first quarter will give us a better sense," said Milanesi via email.

The results show that Nokia needs to sell Lumia phones in both North America and China, according to Milanesi. It has rolled them out in North America, but it must now do so in China, she said.

Nokia sold a total of 113.5 million phones, down 8 percent compared to last year. Also, the number of smartphones sold dropped from 28.6 million to 19.6 million.

Consumers are also paying 23 percent less year-on-year for Nokia's phones -- €53 versus €69.

As the distribution of the Windows Phone-based Lumia smartphones ramps up, Nokia is still dependent on the sales of Symbian-based smartphones. But that isn't working so well. Sales are dropping faster than expected, Nokia said.

"Despite the latest improvements on Symbian's user interface and a few new devices launched, it is now clear that Nokia will not be able to continue relying on Symbian and needs to move even faster to Windows Phones," said Jeronimo.

Milanesi agrees: Symbian's weakness is putting more pressure on Nokia to make the transition to Windows Phone faster.

During 2011, Nokia progressed in the right direction, but it still has a tremendous amount to accomplish in 2012, it said in a statement.

Send news tips and comments to mikael_ricknas@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?