Bad news for Nokia as profits tumble but flogged “well over” 1 million Lumia’s, meaning there could be light ahead for its Windows smartphone gamble.
 Click to enlarge |
Nokia also said it enjoyed “solid” performance in mobile phones in Q4, however, it wasn’t enough to stop it from recording an disapointing loss of $1.4bn for the year.
For Q4 alone, Nokia recorded a $1.26bn loss.
This 2011 loss marks a further downfall for Nokia from $2.7bn profit it enjoyed for y/e 2010.
Total sales for Oct-Dec fourth quarter sales period fell 21% on Q3, although were up 11% compared to Q3.
Nokia’s smartphone sales also rose 25% compared to Q3, although were down 38% compared to 2010.
The rise was attributed to “accelerating investment” in Lumia , having sold “well over” 1 million devices so far after launching the Lumia 800 and 710 in Europe and Asia in October – its first devices on the Windows Phone OS.
However, this pales in comparison to rivals Apple 37 million iPhone sales during the same period, announced Wednesday, or Samsung’s 32 million smartphones it is believed to have sold in the final quarter of last year.
However, Lumia sales fell short of the 2 million target, and with smartphone top dog Samsung and HTC all bringing out Windows based phones in the near future, Lumia days as the only Windows phone are numbered.
Nokia signed a $1bn deal with Microsoft six months ago to become the exclusive Windows carrier and ditch its in-house Symbian platform.
Samsung, a disciple of the Android platform, are tipped to debut its first Windows Phone World Mobile Congress in Europe next month, and are said to delay the launch of Galaxy S III.
Mobile phone sales, Nokia’s strongest market, were also down 23% compared to 2010, but up 4% on quarter.
Q4 “marked a significant step in Nokia’s transformation,” CEO Stephen Elop said, referring to the strategy shift in its Devices & Services business, which saw the giant go hell for leather on Windows based smartphones.
Referring to the Lumia range, he said: “We brought the new devices to market ahead of schedule, demonstrating that we are changing the clock speed of Nokia. To date, we have introduced Lumia to consumers in Europe, Hong Kong, India, Russia, Singapore, South Korea and Taiwan.”
However, some analysts believe Nokia’s gamble on Windows may be paying off although it has much further work to do to convince consumers to give up their beloved Android or iPhone. Microsoft Windows is said to be the second most popular smartphone OS after Android by 2015, analysts predicted this week.
Read Forget iPhones: Windows No.2 By 2015 – Analysts Here
Elop also said he was “pleased” with mobile phones business, which enjoyed double-digit percentage growth in dual SIM business, especially in emerging markets like India, Middle East and Africa.
“In October, we introduced the Asha 200, 201, 300 and 303, which brought new mobile phones into 76 markets around the world. We are building on this foundation with R&D investments as we continue our journey to connect the next billion to the Internet.”
As reported earlier this week, Euro giant Nokia are also looking to invade the US:
” We have also started our important re-entry into the North American market” he confirmed, with major telcos T-Mobile and AT&T both to sell version of Lumia 710 “as a lead device.” The Nokia Lumia 900 is its first LTE device and was also designed specifically for the North American market, Elop said.
However, Elop admitted it has fallen behind Apple and Co but reckons Lumia will give light in its uphill battle to fight off the now dominant smartphone rivals.
“In the war of ecosystems, clearly there are some strong contenders already on the field. And with Lumia, we have demonstrated that we belong on the field.” But, “we still have a tremendous amount to accomplish in 2012” he admitted.
Buts its not just the lucrative US market Nokia are chasing: Lumia is to be unleashed in China and Latin America in the first half of 2012.
However, as Windows Phone goes up, Symbian has fallen, Elop said, predicting the fall of Symbian sales, more than previously anticipated, due to changing market conditions.
And the Nokia boss is positive of good times ahead for the former darling of the mobile industry, saying he’s “confident that we are on the right track to build long-term value.”
The phone giant has also refused to provide annual targets for the year ahead, saying is will be one of transition, during which its phone business will be subject to “risks and uncertainties” suggesting Nokia isn’t quite sure if the Windows gamble has paid off, just yet.
The company has also pledged to cut its cost base further and announced a new strategy and extensive global restructuring program for Nokia Siemens Networks which focuses its business on mobile broadband and services.
Elop also blamed the macroeconomic environment which is making it increasingly difficult to provide reliable targets.
Nokia also said it had a “strong” balance sheet, with net cash and liquid assets of EUR 5.6 bn at end of Q4 2011.
The company will propose a dividend of EUR 0.20 per share for 2011 (EUR 0.40 per share for 2010).
