Nokia sales disappoint as Microsoft readies phone group takeover

Windows Phone sales dropped sequentially despite the holiday shopping season

Nokia's improving Lumia shipments came to a halt during the fourth quarter, bad news for Microsoft, which will soon take over the phone unit.

The Finnish company reported fourth-quarter sales of €3.48 billion (US$4.75 billion), down 21 percent year-on-year, and a net loss of €615 million, down from €3.1 billion a year earlier.(

Having won shareholder approval of the pending sale of its Devices & Services business to Microsoft last November, Nokia isn't including that part of the company in its total numbers, instead reporting that business as discontinued operations in its fourth quarter.

Revenue for the Devices & Services business was €2.6 billion, down 29 percent year on year.

For the first time, the company also didn't break out how many phones it sold, including its range of Windows Phone-based Lumia products. It did say that it shipped fewer phones overall, year-on-year, but that smartphone sales increased. From the third to the fourth quarter, however, the reverse was true: it sold fewer smartphones, but more phones overall.

The fourth quarter is traditionally a strong one for phone vendors, because of the holiday shopping season, so the smartphone sales drop is disappointing and bad news for Nokia and Microsoft, according to Francisco Jeronimo, research director for European mobile devices at IDC. Before the fourth quarter, Lumia volumes had continually increased last year.

The deal with Microsoft is expected to close before the end of March. Once Microsoft has taken control, it has many decisions to make, including brand alignment, how the devices business should be structured within Microsoft, and the level of autonomy it should have, Geoff Blaber, CCS Insight's vice president of research for the Americas, previously said.

Now it also has to add a way to increase smartphone shipments, if it wants Windows Phone to survive.

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.

Tags MicrosoftsmartphonesMergers and acquisitionsNokiatabletsbusiness issuesfinancial resultshardware systemsconsumer electronics

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?