Nokia sells 8.8 million Lumias, but sales flat despite US spike

Nokia sells 8.8 million Lumias, but sales flat despite US spike

Summary: Nokia's latest set of results are a mixed bag – flat sales but better profit, overall volumes down, but smartphones on the rise.

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TOPICS: Mobility, Nokia, EU
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Nokia has published what could be its last sets of financials as a mobile phone maker, revealing a spike in demand for its Lumia smartphone range amid otherwise uninspiring results.

The results, published on Tuesday, show Nokia shifted 8.8 million Lumias in the third quarter of this year, up 40 percent year on year and nearly 20 percent quarter on quarter. It's the most amount of Windows Phones Nokia has managed to sell in a quarter to date.

Nokia put the increase in smartphone shipments down to its "recently broadened Lumia product range and strong customer demand, particularly for the Lumia 520". The 520 has proved one of the more popular Lumias since its release earlier this year, thanks to its affordability.  

However, its mobile phones unit — which looks after its lower end, non-Windows Phones device portfolio, reported handset sales down 27 percent year on year, at 55.8 million, roughly 10 percent of which were Asha touchscreen devices. However, sales were up slightly on the previous quarter, with a rise of four percent compared to Q2.

Total device volumes were down year on year in all markets, bar one — the US. While Europe, Latin America, China, Asia Pacific and the Middle East and Africa all registered declines of 20 or 30 percent in devices sold year on year, North America saw a marked increase – a rise of 367 percent year on year. However, volumes were still small — 1.4 million Nokia Lumia devices were sold in the region in Q3, compared to 300,000 a year ago.

There may be a bit of a comeback in some regions, though, with Europe and Asia Pacific, along with the US, showing a quarter on quarter rise in overall device sales.

Nokia reported total sales of €5.7bn for the quarter, down 22 percent year on year and flat compared to the second quarter of this year. Its Q3 operating profit came in at €118m, compared to a €564m loss a year ago. Among the more interesting items revealed by the results was a €50m profit from the sale of its stake in mapping company Waze, which was acquired by Google for $1bn earlier this year.

In November, Nokia shareholders will vote on the future of the company, and whether to accept a €5.4bn offer from Microsoft to acquire its devices and services business. According to the results published today, Nokia has already racked up €18m in charges relating to the proposed sale.

The acquisition is expected to close in the first quarter of next year, which means sales of Nokia's recently-revealed phablets and tablet will most likely appear on Microsoft's balance sheet, rather than Nokia's.

If the deal goes through, Nokia will be made of three businesses: its Here mapping business, networking subsidiary NSN and its Advanced Technologies unit.

"Nokia's board of directors is conducting a strategy evaluation for Nokia Group between signing and closing of the transaction. This evaluation will comprise of evaluations of strategies for each of Nokia's three businesses and possible synergies between them," Nokia said.

Over the third quarter, Here's sales were down 20 percent year on year at €211m, which Nokia attributed to factors including currency fluctuations and lower sales of sat-navs. Operating profit however was €14m, up from a €56m loss a year ago.

NSN's sales meanwhile fell 26 percent year on year to €2.6bn, which Nokia put partially down to "due to divestments of businesses not consistent with its strategic focus as well as the exiting of certain customer contracts and countries". Operating profit fell from €183m a year ago to €166m in the third quarter of this year.

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Topics: Mobility, Nokia, EU

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47 comments
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  • Nokia Sell 8.8m

    Customers return 8.7m
    Alan Smithie
    • Try keeping your hands on keyboard

      ... ... instead of in your pants.
      LBiege
      • So you've not seen it then !

        The new novelty pants keyboard......

        http://www.gadgetmutt.com/wp-content/uploads/2012/02/nieuwe_heren_pants_keyboard1.jpg

        Smile while you type.
        Alan Smithie
    • M$ just bought a lemon

      they will go down in flames as one!
      LlNUX Geek
    • Never used a Lumia, I see...

      Or brainless.
      kstap
    • Alan Smithie is the new CloggedBottom

      From where do you breathe oxygen?
      Owl`Net
      • Funny you mention it

        I could do with some prune juice.
        Alan Smithie
    • And you are a moron

      and that concludes it. Keep trying.
      Ram U
  • hillarious

    i guess microsoft ordered the phones for their employees, families, friends, lovers, for "promotion" and corruption services and than, maybe million or 2 are sold of which 3/4 will be unsatisfied users.
    ljenux
    • Great phones...

      The 1020 is easily the best phone on the market.
      kstap
      • You can tell by the sales.

        Usually when a product is the best people want it and will buy it in higher numbers then other phones....like the 5s.

        Based on the facts I believe most people do not share your point of view in regards to the 1020.
        KBabcock75
        • Did you buy one?

          I see you didn't, so you can't really claim. Thanks for playing now go back to your so called dumbphone.
          Ram U
        • The sales metric

          I really don't think you want to go down the road of sales as a metric of how good a product is.
          Michael Alan Goff
        • Then Mercedes should sell the most

          @KBabcock75: your logic is flawed :-). I am certain that you haven't even peeked at 1020. Go look at the phone first and then comment.
          animageofmine1
        • @ KBabcock75

          Lumia device share is not revealed yet but the Lumia 520 is Nokia's first huge and real success.

          American market is not representative of their sales. Outside of NA, there is a lot of pentup demand waiting to to be filled with medium and low-cost Lumia phones. Samsung themselves presented a stagnated growth rate on their premium phones. So expecting Nokia which started later to do better in a saturated market will simply not work out.

          The smartphone market has already moved beyond premimum segment growth. It is now the medium and low-end where the growth will come from. Which also explains why Moto-X is the correct strategic phone for Google while 5xx and lower Lumias are the perfect matchup for Microsoft against the growing segments.

          Expect Microsoft to pull in breakeven in Q1 2015 (a year from now) with close to 60 to 80 Lumias shipped in fiscal 2015.

          Want to take a bet?
          calahan
        • Silly Argument that the best quality sell better

          The 1020 is indeed the best phone on the market as far as I am concerned. Really do not care what most people think. I have bought it, I have used it, and I am perfectly capable of making the assessment. To use sales numbers to determine the "best" is pure fallacy. In fact a majority of the most popular items are not the best in terms of quality-whether it be music, movies, TV, or food, or most other things in life. I bought it because I like Windows Phone OS but more importantly I like the build quality and most importantly I love the camera. Anyone who is serious about photography wants the best camera and this one definitely has that. So for me based on the facts the 1020 is the best.
          brickengraver
      • It isn't the best phone.

        It has the best camera in a phone.

        The phone itself has a lot of drawbacks. If they fix all of those drawbacks in the next version, it might eventually claim the crown of best phone.
        BillDem
        • Such as?

          Curious as I am considering getting one.
          Emacho
          • Lumia 1020 - no storrage

            IMHO, it basically needs a memory card slot on it. I recently purchased the 920 instead -- I don't need to spend that much more on a better camera. I still wish I had an SD card slot on this phone. I can't imagine having a 1020 with its bigger picture sizes.

            Other than that, though, not a lot to complain about this 920, so the 1020 would probably be about the best smart phone in the market.
            The-Bytemaster
        • All depends on your needs as to what is best

          In my instance having the best camera in a phone makes the phone the best phone. And as far as call quality (making and receiving phone calls) it is excellent. And texting and email works like a champ. Syncs flawlessly with my Exchange account and has an FM radio to boot. Also has gps driving when not even connected to the network as can download maps to phone and still have driving information. That is big deal to me also. As far as memory is concerned, I upload to skydrive so have no problems running out. I would be nice to have sd chip for videos, I will admit.
          brickengraver