Print 39 comment(s) - last by datdamonfoo.. on Jan 14 at 12:43 PM

  (Source: Nokia)
Signs of recovery raise hope among investors

From large layoffs to mortgaging its headquarters, Finnish phonemaker Nokia Oyj. (HEX:NOK1V) is clearly has been in trouble in the consumer market, and the company appears well aware of that.  Seeing the writing on the wall of its aging Symbian operating system, Nokia made a bold move adopting Microsoft Corp.'s (MSFT) Windows Phone operating system, becoming the first major OEM to throw its weight squarely behind the new platform.

And while the transition has been painful, it is finally showing signs of paying off with Nokia announcing the sale of 4.4 million Lumia (Windows Phone) handsets in Q4 2012. Sales were boosted by high end handsets like the slick Lumia 920 Windows Phone 8 handset, and by expanding its reach to three of America's top four carriers.

At last the Symbian phaseout is almost complete.  Only 2.2 million Symbian handsets were sold in the quarter.  The rest of smartphone sales (9.6 million units) consisted of Asha full touch phones.  Asha is a popular low-cost option in developing markets and uses its own proprietary bare-bones operating smartphone operating system.

Nokia Lumia 920

While smartphone sales are down almost 20 percent from the 19.6 million units Nokia moved last year, the drop off was less severe than analysts were expecting.  And the fact that roughly two-thirds of Nokia high-end smartphones are now Windows Phone indicates that the transition is almost finished.

As a result of the cost cutting coupled with stronger sales, Nokia says it has achieved underlying profitability again.  That's a huge development for the OEM who endured several painful quarters of large losses.  Nokia estimates it pocketed €30M ($39.8M USD) in non-recurring IPR income on total sales of €3.9B ($5.2B USD).

Overall Nokia sales of all mobile devices fell to 79.6 million units -- from a volume of 113 million units last year.  Nokia recently lost its global lead in handset (including non-smartphone sales) to South Korea's Samsung Electronics Comp., Ltd. (KSC:005930).

Overall mobile phones brought in €2.5B, smatphone sales were €1.2B, and services sales (which include patent settlements with Apple, Inc. (AAPL) and others) pulled in €0.2B.

Nokia stock jumped up over 20 percent in early trading on the hopeful news.

Gartner, Inc. (IT), a top mobile research firm, has estimated that by 2015 that Windows Phone will be the #2 smartphone platform in the world, bumping Apple and its increasingly-dated Palm-style user interface to third place.

Sources: Nokia [Q4 2012], [Q4 2011]

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RE: That's good news
By Zuul on 1/10/2013 5:32:29 PM , Rating: 4
First, Apple is number one in profit, design, apps, and pretty much every other category that matters.

Apple is very strong in the consumer space - and number 1 in many categories there is no doubt.

It's easy to only focus on the consumer space as it's the one that's most visible in our day-to-day lives, however there are other areas that actually really matter (ie: what technologies businesses use to support themselves).

Apple has not done well in the business space (SMB/Mid Market/Enterprise). As an example, Apple doesn't actually have their own technology to operate their iTunes and AppStore, or have developed their own ERP. They run SAP as an ERP. To operate the itunes and appstore, they are running SAP Convergent Charging, SAP Convergent Invoicing, and SAP Customer Financial Management (they've invested hundreds of millions of dollars). Oh, all that infrastrure - doesn't run on OSX and they use a combination of Microsoft, and Oracle systems to support SAP.

RE: That's good news
By kleinma on 1/10/2013 6:21:12 PM , Rating: 3
I also read they use a combination of Windows Azure and Amazone Cloud to power iCloud.

RE: That's good news
By Azethoth on 1/10/2013 6:51:28 PM , Rating: 1
I do not get your point. Are you saying Apple should be running their back end systems on racked iPhones?

Or are you saying Apple should write their own back end system from scratch and duplicate the SAP software?

Whats next, rewriting a web server from scratch instead of just using Apache?

RE: That's good news
By Camikazi on 1/10/2013 7:37:50 PM , Rating: 2
Apple is perfect and their OSX is the best in the world so why would they demean themselves by using Microsoft and Oracle code for their precious servers?

RE: That's good news
By Manch on 1/11/2013 7:16:47 AM , Rating: 2
Neither will the troll he was replying to. All he saying is that while Apple is #1 in a lot of areas, MS and the lot that macdevdumbass is saying are dying is just simply not the case and that the services from Apple that he loves sooo much are powered by the same companies Apple battles in the consumer space.

You balk at the idea of them rewriting webserver or making there own back end but didn't they just replace googlemaps with their own map system? oh yeah...wait, yup, gotcha.

RE: That's good news
By Zuul on 1/11/2013 10:18:51 AM , Rating: 1
I re-read it and the point was clear to me. Here's a tl;dr: He said Apple is #1 in all areas that matter. I said no, not true - the enterprise space is an example where they are not and it's a significant market and I gave an example of it.

"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer

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