Nokia just released their earnings report for the first quarter.
Looks like estimates were pretty accurate this time.
Basically, Lumia Q1 sales volumes increased 27% quarter-on-quarter to 5.6mn units, while everything else in their devices and services division is getting worse, meaning they are selling ever fewer Symbian and feature phones:
EDIT (everything below):
Mobile Phones are down 30%, from 79.6mn to 55.8mn units (this includes their Asha devices, of which they sold 5.0mn units)
Symbian Smartphones are down from 2.2mn to 0.5mn units
The average selling price for a smartphone was €191 (includes Symbian devices)
Their most profitable division by far was Nokia Siemens Networks, with an operating margin of 7%. Depending on how you parse the numbers, their devices and services division is either still loosing money, with an operating margin of -1.5%, or just barely breaking even at 0.1% (non-IFRS).
My main takeaway from this is that Nokia's devices and services division will have to rely almost entirely on Lumia sales very soon. Few expected their Symbian devices to contribute much to their bottom line for much longer, but their feature phone sales (includes Asha devices) are deteriorating even faster at over -30% per quarter. As it is now, Lumia sales aren't rising fast enough to compensate for the other loses. It looks to me like EOS and Catwalk can't come soon enough.
What do you think?
Looks like estimates were pretty accurate this time.
Basically, Lumia Q1 sales volumes increased 27% quarter-on-quarter to 5.6mn units, while everything else in their devices and services division is getting worse, meaning they are selling ever fewer Symbian and feature phones:
EDIT (everything below):
Mobile Phones are down 30%, from 79.6mn to 55.8mn units (this includes their Asha devices, of which they sold 5.0mn units)
Symbian Smartphones are down from 2.2mn to 0.5mn units
The average selling price for a smartphone was €191 (includes Symbian devices)
Their most profitable division by far was Nokia Siemens Networks, with an operating margin of 7%. Depending on how you parse the numbers, their devices and services division is either still loosing money, with an operating margin of -1.5%, or just barely breaking even at 0.1% (non-IFRS).
My main takeaway from this is that Nokia's devices and services division will have to rely almost entirely on Lumia sales very soon. Few expected their Symbian devices to contribute much to their bottom line for much longer, but their feature phone sales (includes Asha devices) are deteriorating even faster at over -30% per quarter. As it is now, Lumia sales aren't rising fast enough to compensate for the other loses. It looks to me like EOS and Catwalk can't come soon enough.
What do you think?
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