backtop


Print 66 comment(s) - last by Flunk.. on Aug 10 at 9:02 AM

Nokia still has a lot of cash, but does it have the drive to get out of this slump?

Nokia Oyj. (HEX:NOK1V) took way too long to release its first Windows Phones.  But the results -- like the Lumia 900 LTE -- looked distinctive, lending hope that the phonemaker's approach was merely meticulousness, not sloth.  Initial sales of the Lumia 900 looked promising.

I. Nokia's Recovery Stalls in Q2 

But the wheels fell off the train somewhat in the last quarter.  Sales stalled to 600,000 units in the U.S., including 330,000 Lumia 900s.  That's down 60 percent in unit sales since last year.  And it's way off the roughly 6 million units Nokia moved per quarter in 2006.

One factor slowing sales may be the recent announcement that there will be no full upgrade path for Windows Phone 7 devices to Windows Phone 8.

Revenue wasn't quite so bad for the North American region, as the higher revenue from the Lumia 900 and other models offset lower sales.  But globally the financials were quite bad as well.  Writes Nokia, "All regions showed a significant year-on-year decline in the second quarter 2012 except for North America where the sharp decline in sales of Symbian devices was more than offset by sales of our Lumia devices."

Globally, Nokia sold 4 million Lumia Windows Phones.  That means that roughly 40 percent of Nokia's 10.2 million smartphones sold are Windows Phones.  The rest are the soon-to-be defunct Symbian.  

Nokia white Lumia phones
Nokia's stylish Lumia Windows Phones have been unable to right Nokia's ship, thus far.
[Images Source: Engadget]

Those numbers reflect on just how lackadaisical Nokia's transition pace remains.  It's been nearly a year and a half since Nokia announced that it would be moving entirely to Windows Phone.  A year and a half later it's not even halfway there.

Overall feature phone sales did manage to grow slightly jumping from 71.8 million units last year to 73.5 million units.  Still, Nokia now trails Samsung Electronics Comp., Ltd. (KSC:005930) in feature phone sales.

Losses for the quarter tucked in at €826M ($1.01B USD) on revenue of €7.52B ($9.22B USD).  Sales were down nearly 20 percent since last year, while the loss almost doubled.  Nokia has committed to big layoffs to try to offset the sinking sales.

With money losses mounting and the Windows Phone transition far from over, all three major credit agencies have downgraded Nokia's credit to "junk" status.  Nokia is only fortunate that it is sitting on a pile of cash -- €3.5B ($4.29B USD), to be precise.  That's slightly more of a cushion than some struggling rivals like Research in Motion, Ltd. (TSE:RIM) have.

All of this is the same old story for Nokia and none of it is terribly surprising.  The company is still lingering around, but the concern is that after a couple of intriguing device announcements, it seems back to its old ways, continuing its slow slide down the hill.

II. Nokia Almost Released iPhone, iPad Look-Alikes in 2000

About the most interesting thing to come out of the earnings hoopla was a report in The Wall Street Journal, which released details of an iPhone and iPad-like device developed by Nokia researchers in the 1990s, but never released.  The smartphone had a color touch-screen at a time when most phones were keyboard-driven units with tiny black-and-white pixel displays.  And most notably it had a single round button beneath the touch-screen -- just like the iPhone.
 
Apple iPhone
Nokia reportedly was testing a device nearly identical to the iPhone, seven years before Apple. [Source: David Paul Morris/Getty Images]
Likewise Nokia had a tablet computer that was built around a large touch screen and a wireless connection.  Unlike many other Windows tablets of the time it lacked buttons.

Nokia may deserve some credit for conceiving the iPad and iPhone designs over seven years before the original iPhone, but it has no profits to show for that creativity.  About the only positive value to come from the innovation was a $6B USD trove of patented ideas, most of which Nokia never succeeded in bringing to market.

Comments CEO Stephen Elop, "If only they had been landed in products.  I think Nokia would have been in a different place."

Instead he's left to ponder selling some of those memories of past innovation squandered to try to stay afloat.  Nokia is also actively suing rivals to try to generate revenue.

Source: Nokia



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: Beat estimate by 1 million
By Mitch101 on 7/19/2012 7:25:52 PM , Rating: 1
Hes just jealous because he cant find his d1ck so he tries to compensate with big hardware.


RE: Beat estimate by 1 million
By Reclaimer77 on 7/20/12, Rating: 0
RE: Beat estimate by 1 million
By Mitch101 on 7/20/2012 11:31:07 AM , Rating: 1
You cast the first stone "WP circle jerk"

You remind me of Walter Peck
http://www.youtube.com/watch?v=cDQk4lGSEJQ


RE: Beat estimate by 1 million
By Reclaimer77 on 7/20/2012 11:51:45 AM , Rating: 2
Yeah that was totally the same as saying you had no penis or whatever lol.

Hey I'm not whining, bring it on if that's how you want to play it. I just thought it wasn't even a very good insult, pretty immature, and was thrown way too early.

If you're going to cheer-lead and post sales projections and profit numbers like the WP version of Tony Swash, you can't get offended when someone brings you back down to Earth.


RE: Beat estimate by 1 million
By Mitch101 on 7/20/2012 1:40:43 PM , Rating: 2
Some will get the analogy you like to compare the latest product release with the biggest hardware to everything else is somehow crap despite people really enjoying the device.

Im really happy with my windows phone and Im not going to let someone with their e-penis tell me somehow how my life is incomplete or ruined because of the choice I made. If I didn't like it I would say it sucks but its darn good but I and all those people on Amazon, Verizon, AT&T, Sprint who gave the phone great reviews must be stupid.

In your eyes the lumina must be garbage because it doesn't have 4 cores and run Android despite being a perfectly good device with a very high satisfaction rate but were all wrong and your right. Ive had enough Android devices to make a decision on why I prefer the Windows Phone over the Android.

God forbid anyone like something other than Android mobile and your all over them as if we've all made a huge mistake.

I dont care if Im the Tony Swash of Windows Phone Im happy with my device. Your happy with Android but unlike you I dont feel the need to make negative comments on every non Android post out there.

Keep on trolling Reclaimer.


RE: Beat estimate by 1 million
By Reclaimer77 on 7/20/2012 2:46:39 PM , Rating: 2
Man I think you packed more melodrama into that post than the entire Twilight franchise. Please, chill out. You're going WAY overboard.

The Lumia 900 is NOT garbage. What's happened here is that Jason and a few others were so desperate for Windows Phone to work out, you heralded the Lumia with WP 7.5 as the "next big thing" in mobile computing, when it's clearly not.

It's an average phone running an OS that's FAR behind the times. Those are the facts. If you like it, great. Where am I tell you that you cannot like it?

You can find posts of mine from last year, maybe 2 years ago, praising Microsoft and predicting a MS vs Apple war for the top spot. Your opinion of me as an MS basher is SO far off the mark. However it's now become clear to me that under Balmer, Microsoft is a stumbling giant. They seem incapable of delivering on their promises, and WP has stagnated.


RE: Beat estimate by 1 million
By Flunk on 8/10/2012 9:02:18 AM , Rating: 2
I don't think that would matter, as the Android version of Tony Swash I don't think anything would affect your opinion.


"The Space Elevator will be built about 50 years after everyone stops laughing" -- Sir Arthur C. Clarke














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki