Nokia's India revenue falls 23 percent

Nokia's India revenue falls 23 percent

Summary: Finnish phonemaker saw its 2012 revenue in India drop 23 percent year-on-year from US$3.77 billion to US$2.87 billion, which it said was due to stiffer competition and currency fluctuation.

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Nokia's annual revenue in India, its second biggest market after China, fell for the second consecutive year, with sales totaling about 2.23 billion euros (US$2.87 billion) in 2012 from all its business divisions including smartphone, network infrastructure, and maps.

This was a 23 percent decrease from 2.92 billion euros (US$3.77 billion) in 2011, the Economic Times reported Sunday. The Finnish phonemaker saw net sales in India hit 2.95 billion euros (US$3.81 billion) back in 2010.

nokia
Nokia's 2012 revenue in India fell for the second consecutive year, reaching US$2.87 billion.

"The year 2012 was one of transition for Nokia," a Nokia spokesperson said. "While the first half of the year was challenging, our execution against a focused business strategy started to translate into financial results in the final three months of the year. Nokia is working at a new clock speed, and we look forward to delivering new and innovative solutions to consumers in India and globally in 2013."

The company attributed the revenue drop to increased competition as well as currency fluctuation.

Explaining the currency fluctuation, Nokia said the majority of its non-euro based sales was denominated in the US dollar, and having a presence in emerging markets such as China, India, Brazil, and Russia gave it substantial foreign exchange exposure. The Indian rupee depreciated by 2.3 percent against the euro, it added.

Nokia highlighted that competition was intensifying not just in India, where various local mobile device manufacturers had emerged, but also across other emerging markets. "Success of such competitors could adversely affect sales of our mobile devices in various countries such as China, Indonesia, and India where we have been traditionally strong," the company said.

According to data from CyberMedia Research in October, Nokia was the overall top phonemaker in India in the first half of 2012. Data from the India market research firm showed the phonemaker held 22.2 percent share of the overall 102.4 million shipments in the country between January and June last year. But it noted that while Nokia held first place in feature phone shipments, it took second place in terms of smartphone shipments, losing the top spot to Samsung.

Topics: Smartphones, Nokia, Telcos

Jamie Yap

About Jamie Yap

Jamie writes about technology, business and the most obvious intersection of the two that is software. Other variegated topics include--in one form or other--cloud, Web 2.0, apps, data, analytics, mobile, services, and the three Es: enterprises, executives and entrepreneurs. In a previous life, she was a writer covering a different but equally serious business called show business.

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6 comments
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  • A Lesson of delayed gratification

    The Marshmallow test: http://www.youtube.com/watch?v=amsqeYOk--w
    The kids who know how to show some patience to resist the immediate temptation will have double reward. They are also generally more successful in life.

    The Nokia kid is the one who could not resist the 1 Billion dollars given by Microsoft. It killed its entire smartphone product line to grab the $1B. Now its management is pondering "if only we didn't rush into that $%*&! WinPhone business". They try to self-justify by saying we lost 23% because the rupee depreciated by 2.3%

    The future will be worse, as soon as affordable non-Nokia smartphones make it in India, nobody will buy any Nokia feature phone.
    RelaxWalk
    • A Lesson in commen sense

      You probably are smart enough to know what you are saying is BS but enjoy it never the less.

      You argument has multiple flaws, first Nokia's Lumia 900 phone (its first Windows Phone) was only launched in 2012 and only available in US in March 2012, probably well later in India so MS/Window OS really didn't have much to do with Nokia's performance in India and not much overall given that markets don't turn around on a dime.

      You might also know that most Android Phone makers with the exception of Samsung are also doing poorly, just ask HTC.

      If you don't know these facts and I misjudged your competence then I apologize.
      futureguy2
      • I agree to some extent with the original post

        It's far from BS imo.
        Also HTC is not doing well overall but they were the big winners in India in recent years.
        We all read the news about how poorly Nokia has done with smartphones since they've decided to go windows, while their performance with feature phones is forgotten, but the reality is they are losing market fast also there.
        The currency ratio excuse is obviously a bad excuse, first it was small enough, second a weaker euro would turn Nokia phones cheaper and more competitive, the lost profit could be compensated with more sales - didn't happen.

        I'm waiting for the results for q1 2013, I've predicted lumia sales below 4M, I admit that maybe I was a bit pessimistic, with China push they can get close to 5M, but if they don't sell a lot more than that it's a terrible sign. With their current share they should be growing strongly quartet after quarter... But let the numbers roll...
        AleMartin
      • Re: most Android Phone makers with the exception of Samsung are also doing

        Sony's and LG's mobile divisions seem to be doing OK, and Asus is reporting better profits than any Windows-centric OEM, probably because of its thriving Android business.

        So it's not just Samsung, by a long shot. In fact, most Android devices being sold are not made by Samsung.
        ldo17
  • Any Bright Spots In Quarterly Trends?

    Can anyone find any quarterly breakdowns on Nokia's India revenues? Like, have the release of the Asha or the Windows Phone 8 models helped in any way? Or is it unmitigated gloom regardless?
    ldo17
  • Again Zdnet is bringing old News to cause negative sentiment about Nokia

    These numbers were known since January this year.
    These numbers were caused because of Nokia's transition to WP, which made Symbian sales decline.
    Todays world looks much sunnier for Nokia, especially in India.
    The Lumia 620 has just arrived over there and the other Lumia's are coming.
    babbeloo