Nokia back in the black after six straight quarterly losses

Nokia back in the black after six straight quarterly losses

Well, well. Nokia boss Stephen Elop said to judge the move to Windows Phone after two years and, bang on cue, the company has just announced its first profitable quarter since Q1 2011.

The bottom line of the earnings report (PDF) reads a profit of €439m (£374m), mainly from sales of 4.4m Lumia smartphones from October to December 2012, that after six consecutive quarters in the red for the troubled Finns.

Nokia already announced those sales figures last week, but the real good news is the timely end to that run of losses, which has seen Nokia's cash reserves dwindle alarmingly over the past couple of years.

Against that backdrop Nokia will take good news however it can get it, but it's worth pointing out that its main source of income continues to be not its mobile devices division, but rather its Nokia Siemens Networks telecoms equipment branch, which brought in record income over the quarter.

Looking purely at phones, year-on-year sales dropped from 113.5m to 86.3m overall in Q4, but smartphones saw a more pronounced drop from 19.6m to just 6.6m units sold.

The average selling price (ASP) of its smartphones did at least increase year-on-year from €140 (£119) to €186 (£158), but the reduced contribution of smart devices to overall sales saw the overall ASP drop from €53 (£45) to €45 (£38).

The bad news is that the traditionally low Q1 quarter should see a return to operating losses for Nokia, to the tune of about 2%. As a result, and considering the companies reduced cash reserves, Nokia isn't paying a shareholder dividend despite the modest Q4 profits.

Via The Verge

Add a comment

Pondlife  Jan. 25, 2013 at 19:26

Didn't we do this yesterday?

judgey  Jan. 26, 2013 at 02:02

tbh im amazed they made money

FrancisJ  Jan. 26, 2013 at 07:25

Thank god they went with the windows phone , if they had gone with the buggy and slow android they would be broke by now.

Pondlife  Jan. 26, 2013 at 11:07

Presume that's sarcasm.


You don't need an account to comment. Just enter your email address. We'll keep it private.