Nokia Posts Lower-Than-Expected Sales for Q2 2013; Outsells BlackBerry with Lumia Line Alone
July 18, 2013 10:00 AM
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Nokia sold 7.4 million Lumia devices for the quarter while BlackBerry's total sales were 6.8 million
Nokia may have posted a loss for the second quarter, but at least it managed to
sell more Lumias
than BlackBerry did phones.
For Q2 2013, Nokia posted an operating loss of €115 million ($150 million USD), which is quite a drop from the year-ago quarter's loss of €824 million ($1.1 billion USD).
Nokia's net sales were at €5.7 billion ($7.5 billion USD) with a non-IFRS earnings per share of $0.00 -- which is a 24 percent decrease from the year-ago quarter. Analysts expected revenues of €6.59 billion ($8.63 billion USD) with a loss per share of $0.03.
The Lumia maker's earnings report also mentioned staff cuts, with the next round equating to about 440.
On a better note, Nokia sold 7.4 million Lumia devices for the quarter, which is a boost from the 5.6 million sold last quarter and nearly double the 4 million sold in the year-ago quarter.
Interestingly, Nokia sold more Lumia devices for quarter than BlackBerry sold smartphones (including
BlackBerry phones, such as the Z10 and Q10). BlackBerry sold 6.8 million smartphones total for Q2.
This represents the first quarter that the Lumia line surpassed BlackBerry phones, but it may not be too surprising that this finally happened. In May, the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker showed that
Windows Phone jumped to third place
for mobile phone market share in Q1 2013 with 7 million units shipped. Nokia accounted for a big part of that, making up about 79 percent of all Windows Phone shipments during that quarter.
This pushed BlackBerry down to fourth place with 6.3 million shipments and 2.9 percent market share for the quarter. This was compared to 9.7 million shipments 6.4 percent market share in Q1 2012.
Android holds the No. 1 spot while Apple's iOS is second.
Nokia is certainly coming along with its Lumia line. It has been consistent with releasing new devices for various price points, and some of the features have been a big draw. For instance, Nokia announced its whopping
41 MP Lumia 1020
For those who don't want to spend the big bucks on a smartphone with a 41 MP camera, here are low-end options like the
, which Nokia just announced this week. It has decent specs with a dual-core 1.2GHz S4 processor, 512MB of RAM, a 5-megapixel camera and a 800 x 480 (WVGA) resolution. It also has one of the largest screens of the Lumia family at 4.7 inches.
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"some of the features have been a big draw"
7/18/2013 1:29:07 PM
So... the camera on the new Lumia sounds pretty interesting to me, but calling anything "a big draw" prior to seeing sales numbers is kind of premature.
While the camera functionality is interesting and unique, we have no idea if it's going to do anything for Nokia's sales. We'll see.
RE: "some of the features have been a big draw"
7/18/2013 4:02:00 PM
1020 is sold out but can they maintain selling out? Will be interesting to see.
The takeaway is Nokia sales are growing. Maybe not in leaps and bounds but growth is growth.
Nokia: Don't Fall For The Bear Trap, Keep Buying
For the all important Lumia sales, the sell-side was disappointed by the 7.4m volume number for Q2. Even though this is +32% Quarter on Quarter (QoQ) vs. management guidance which was for growth of 27%. That is because the consensus had forecast 7.8m units sold or + 42%. Even the bulls on the stock were expecting a figure between 7 - 7.5m. It is somewhat analogous to be bearish on Nokia but also be forecasting its' lead product to be growing at 42% QoQ.
The bears set the bar too high in order to disappoint.
Also the product launch schedule meant a lot of the lead products did not get the benefit of a full quarter of sales. This should have been well known. Yet
Nokia still grew volumes by greater than forecast 32%
If the stock goes down you can expect Microsoft and Huawei eyes just opened a bit wider. Or anyone else looking to buy their way into the Windows Phone market especially with a company showing QOQ growth like this.
RE: "some of the features have been a big draw"
7/19/2013 9:51:49 AM
"Sold out" without any attached numbers doesn't mean much, it could mean they sold a bunch of 'em, could be an indicator of poor planning, or it could just be a marketing ploy.
"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA
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