Print 42 comment(s) - last by kmmatney.. on Apr 21 at 12:24 PM

Things still aren't great, but Nokia appears to be head in the right direction

Nokia Oyj. (HEX:NOK1V) has been on a wild ride.  For a time it was the largest maker of both smartphones (via its Symbian platform) and feature phones.  Then came its struggles to compete with Apple, Inc. (AAPL) and Android, and the decision to embrace Microsoft Corp.'s (MSFT) Windows Phone.  The bold move seemed to only hasten Nokia's fall from grace on the market.

But while it's true that the Nokia of today is much smaller and less profitable than the Nokia of yore, it also appears to be returning from the brink and returning to growth.

In Q1 2013 it sold [PDF] a humble 5.6 million Lumia phones, up from 4.4m during the holiday quarter and 2 million a year ago.  To put that in context, rival Samsung Electronics Comp., Ltd. (KSC:005930) sold around 68 million smartphones in the quarter, while the low estimate for Apple's sales is around 34 million.

In other words, Nokia is still a small player, but it's seeing steady growth in its core Windows Phone platform.  True, 2 million sales is pathetic, but doubling your sales is still doubling your sales.

And Nokia's balance sheet is also improving.  A year ago it made €7.4B ($9.7B USD), but lost €1.34B ($1.70B USD).  This quarter it only made €5.9B ($7.7B USD), but trimmed the losses down to €150M ($196M USD).  That red may be troubling given that it made €202M ($269.0M USD) in total profit after tax last quarter.  But it's not as bad considering that this wasn't a key launch quarter for Nokia smartphone-wise and the holiday quarter tends to be more profitable for all OEMs.

Nokia Lumia 920
The phonemaker did miss analyst targets -- the consensus target for revenue was €6.5B ($8.5B USD), while the loss was roughly in line with the ~€160M ($209M USD) estimate [source].

Shares in the Finnish phonemaker traded lower on the revenue miss, but that will inevitably turn around if the company continues to grow its Windows Phone sales.  Looking ahead, this fall's Windows Phone Blue will be a critical launch for Nokia. 

In the meantime the company reportedly has a few devices up its sleeve.  It's planning a July refresh to the Lumia 920 that's thinner and lighter, and planning a more affordable version of the 920 for the autumn.  Also slated for July will be the long-awaited 41-megapixel Windows Phone version of the PureView device.  
Nokia PureView
The Nokia PureView 808 [Image Source: Nokia; Modifications: Jason Mick/DailyTech]

Financial Times reports that a phablet is also in the works, writing:

The device that can work as a phone and a tablet – known as a “phablet” – similar in size but with more advanced specifications to Samsung’s popular Galaxy Note.

This is a key emerging category -- Samsung is leading the way with the Galaxy Mega.  Nokia is likely eager to take a piece of the jumbo phone pie as well.

Sources: Nokia, FT [analyst estimates], FT [phablet details]

Comments     Threshold

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

Growth is good for everyone
By txDrum on 4/18/2013 6:16:26 PM , Rating: 5
First things first: Android AND Apple fans should be hoping for Nokia and WP8 to succeed. More competition means more innovation, and Nokia has definitely been pushing the innovation of smartphones.

OIS with the amazing lowlight performance of the Lumia 920 promptly made its way onto the HTC One - arguably the best Android phone to date (gold editor's choice on Anandtech after all). Nokia offers the high sensitive touch screen that I expect will eventually work its way onto Android and maybe even iPhone.

Nokia is certainly pushing the envelope in smartphone camera tech with the rumored 41MP Lumia. Things like that are allowing them to push out quality products.

Sure, they don't ship as much as samsung, but growth is growth, no matter how you look at it. And the Lumia line is just now getting into emerging markets and really starting to hit its stride. Everything you see from Windows phone right now is generally steady growth - the same thing Android started with in 2009. It's still too early to call whether it is going to be successful or not.

RE: Growth is good for everyone
By Reclaimer77 on 4/18/13, Rating: -1
RE: Growth is good for everyone
By Tony Swash on 4/18/13, Rating: -1
RE: Growth is good for everyone
By GulWestfale on 4/18/2013 7:20:03 PM , Rating: 2
well, i'll be... tony swash made a post i can gree with.
and now i gotta go outside, i'm shootin' me one o'dem flyin' pigs, y'all.

RE: Growth is good for everyone
By retrospooty on 4/18/2013 7:26:10 PM , Rating: 5
Be realistic... This is ONLY because WP8's low sales makes Apple look good. IF it doesn't serve his agenda, he wouldn't post it.

RE: Growth is good for everyone
By Tony Swash on 4/18/13, Rating: -1
RE: Growth is good for everyone
By retrospooty on 4/18/2013 10:51:18 PM , Rating: 3
I agree. MS is irrelevant 2 apple at this point, you're right. But you're only saying it because it makes Apple look good. You only made that reply because your reply that ms is irrelevant also makes Apple look good. If it didn't make Apple look good you wouldn't bother to mention it like the stock, and lower sales #s and expected declines, lowered forecasts etc.

The problem with being 100 percent full of s**t all the time is that everyone sees you coming and you don't fool anyone.

RE: Growth is good for everyone
By Tony Swash on 4/19/13, Rating: 0
RE: Growth is good for everyone
By retrospooty on 4/19/2013 8:42:30 AM , Rating: 5
"I tend to prefer commenting on what is rather than what may be."
Right... You just left out the part about what "is" positive about any competitor and what "is" negative about Apple.

"You seem very paranoid. I am not trying to fool anyone"

LOL... Funny. Like I say, you tend to tell "The Truth" and "Nothing But The Truth" but ALWAYS leave out "The Whole Truth" ... Meaning, you paint a false picture. You are a smart bloke, and its not by accident. Your posts are generally well thought out, and cleverly worded to bend facts and obscure information, done with the skill of a seasoned politician. You arent here to see what is going on in the tech world, or to learn what products may be coming. You are here on an agenda to try and change minds... For whatever reason. I will leave that reason to others. Whether a paid shill, or an obsessed fanboy is irrelevant, neither is acceptable.

RE: Growth is good for everyone
By StormyKnight on 4/18/2013 11:00:24 PM , Rating: 3
I think it would be great for Microsoft and for lots of iOS and Android users if they made a good touch version of Office for those platforms.

The problem here is, what would the price point be? Would they charge an obscene amount like they do for the desktop? If so, who would actually buy a version for i0S or Android??

RE: Growth is good for everyone
By BRB29 on 4/19/2013 7:58:00 AM , Rating: 2
It would be in MS's best interest to make it real cheap or even free. The point is not making money off Office, it is gaining marketshare from generating interest in the phone. Then they will make money per phone sold and apps store.

RE: Growth is good for everyone
By tayb on 4/18/2013 7:31:46 PM , Rating: 3
Android fanboys and Apple fanboys can occasionally get together to bash Microsoft, it seems.

RE: Growth is good for everyone
By ATrigo on 4/18/2013 8:50:55 PM , Rating: 2
My enemies' enemy is my friend, right?

Well to be honest any of the two always get together to bash on the other.

RE: Growth is good for everyone
By ResStellarum on 4/19/13, Rating: -1
RE: Growth is good for everyone
By txDrum on 4/18/2013 7:28:26 PM , Rating: 4
Android had to start at 1% market share too you know. I don't know why people expect WP8 to be an instant competitor. I don't. I love my 8X, and would have bought a 920 if I had AT&T, but I see the caveats to Windows Phone. They're essentially the exact same problems that Android had when it entered the market (namely the biggest thing being apps). People don't care about the hardware inside - If I had bought an HTC One, I'd brag about the Snapdragon 600, the science behind the Ultrapixel camera, and Qualcomm's design/pipeline all day, but the average consumer doesn't care.

Developers ARE getting on to windows phone though. The only big missing apps are Instagram and to a lesser degree snapchat? I don't really use either, but Instagram is a big one. The community is growing, and it shows. Everybody starts somewhere, and Windows Phone is growing like it needs to be.

The reason not all the phones are WP8 is because Lumia 520/620/720 haven't been out everywhere yet. They're just now shipping budget phones that will replace the budget WP7 devices. And also, don't ignore WP in Europe - it's still obviously no Apple/Samsung, but it's growing even better there. Double digit market shares exist in more than one country (and not just the ones with <100,000 smartphone markets or something either).

WP8 (and somewhat, BB10) are in the same position Android was 4 or 5 years? ago. But instead of it being Apple and Blackberry, it's Android(samsung?) and Apple.

RE: Growth is good for everyone
By GulWestfale on 4/18/13, Rating: 0
RE: Growth is good for everyone
By Pirks on 4/18/2013 8:32:12 PM , Rating: 5
your brain is crappy, and wp8 interface is slick, comfortable and functional, it's like souped up iOS on much better hardware

RE: Growth is good for everyone
By Reclaimer77 on 4/18/2013 9:06:47 PM , Rating: 2
your brain is crappy

lol does that comeback still work in Middle School, Pirks?

RE: Growth is good for everyone
By Pirks on 4/18/2013 10:22:34 PM , Rating: 1
when you grow up to the level of middle school, you'll see it yourself :P

RE: Growth is good for everyone
By Belard on 4/20/2013 5:16:45 PM , Rating: 2
WP7 / WP8 UI (Metro) works very good on the phone form factor. The tiles are really nothing more than big buttons.

I used to run WP7 Launcher on my Android 2.x phone. When I got a new phone with Android 4.0, I didn't need the WP7/8 launcher... I liked more of what the default Android launcher was offering me. Widgets and such, that WP7/8 launcher would mess up.

Metro on a desktop computer is crap.

RE: Growth is good for everyone
By Solandri on 4/18/2013 8:32:05 PM , Rating: 2
Android had to start at 1% market share too you know. I don't know why people expect WP8 to be an instant competitor.

Because once upon a time Microsoft held the lion's share of the PDA market. When PDAs merged with phones to become smartphones, everyone figured Microsoft would be right up there with the market leaders. Instead they've misfired and completely squandered away that huge market lead they once had.

"Nowadays you can buy a CPU cheaper than the CPU fan." -- Unnamed AMD executive

Latest Headlines
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
The Samsung Galaxy S7
September 14, 2016, 6:00 AM
Apple Watch 2 – Coming September 7th
September 3, 2016, 6:30 AM
Apple says “See you on the 7th.”
September 1, 2016, 6:30 AM

Most Popular Articles5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
No More Turtlenecks - Try Snakables
September 19, 2016, 7:44 AM
ADHD Diagnosis and Treatment in Children: Problem or Paranoia?
September 19, 2016, 5:30 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
Automaker Porsche may expand range of Panamera Coupe design.
September 18, 2016, 11:00 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki