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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]



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RE: Growth is good for everyone
By Tony Swash on 4/19/2013 6:12:57 AM , Rating: 0
quote:
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.


I tend to prefer commenting on what is rather than what may be.

quote:
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.


You seem very paranoid. I am not trying to fool anyone, why would I bother to do that, the truth comes out in the end. I make comments, interpret events and where possible point towards real data sources rather than speculative click bait junk journalism. If people disagree then they are free to offer alternative views, it's called debate. You on the other hand seem to feel deeply offended by the mere fact that I post comments expressing opinions that differ to your own, which I think is a bit odd. Unfortunately your comments have the effect of constantly shifting the focus of debate away from the fascinating analysis of what is going on in the complex world of technology and tech markets and into the realm of personal antagonism. It feels a bit vacuous and a tremendous waste of time.


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.


"So if you want to save the planet, feel free to drive your Hummer. Just avoid the drive thru line at McDonalds." -- Michael Asher














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