Nokia takes another hit in Q3 as total Windows Phone era losses top €4bn

Nokia takes another hit in Q3 as total Windows Phone era losses top €4bn

Nokia made it six in a row today by announcing its sixth consecutive quarterly loss in Q3 2012, posting losses of 576m euros from revenues that fell 19% from Q2.

Within the greater context of Nokia's recent struggles, however, the loss was actually less severe than expected and saw the company's share price rising in response.

However, the lower-than-expected losses had nothing to do with the Lumia line of Windows Phones that hold the key to Nokia's future as a serious player in the smartphone business, but came instead from strong profits posted by the company's Nokia Siemens Networks telecoms equipment division.

As for Nokia's smartphone division, there was little surprise in seeing Lumia smartphone sales dive from 4m in Q2 to just 2.9m in Q3 – in fact, it could potentially even be a good thing for Nokia, as a drop in Lumia sales suggests people are waiting for the arrival of the latest Windows Phone 8 devices, which are expected to launch within a few weeks.

Either way, Nokia could really do with a more successful Q4 on the back of decent sales of the Lumia 920 and Lumia 820 WP8 handsets and the traditional sales boost the entire industry tends to enjoy in the run-up to Christmas.

It would certainly lower the pressure a notch or two, especially on CEO Stephen Elop, who's own legacy will forever be associated with the Windows Phone switch. In the six full quarters since the decision to abandon Symbian and MeeGo and underpin Nokia's smartphone aspirations with Microsoft's mobile platform, Nokia has posted overall losses in excess of €4bn.

If Nokia can turn things around in Q4 and ride improved Lumia sales to – dare we say it – even post a small profit, Elop will argue that the Windows Phone switch was the right move for the company's future.

That's a big if, however, and publicly at least Nokia is warning not to expect much improvement in Q4, fully aware of how big a step forward so many of its smartphone rivals have made in recent months.

Via Nokia (PDF)

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JanSt / MOD  Oct. 18, 2012 at 19:55

The kicker is 300,000 devices sold in the USA! Not smartphones only. Devices!
Also: in the UK/EU RIM had almost TWICE the sales...

Of course, confirming that the first Lumias won't get Apollo and showing off the new Lumias early, practically put an end to sales of Nokia's WP devices.
The Asha devices are doing okay, but thanks to the smartphone sales decline. Nokia loses record amounts per device made.

And what does fE-lop do: he goes out and says, "a MS Surface phone would be good..."

You really gotta wonder.

Pondlife  Oct. 18, 2012 at 22:23

Well first part of this quarter could be even worse as even closer to wp8 launch.
Given the fuss over each price drop on hukd I thought q3 would have been ok. Imagine how few they would have shifted without the price plunge.

JanSt / MOD  Oct. 19, 2012 at 07:22

Tricky question, pondlife.
Reasons for pricedrop were all bad... without wp8 for those devices, and no indication what wp7.8 will exactly deliver???
When HP dumped the touchpads, people already knew you could install Android on it etc... so, that's different.

Pondlife  Oct. 19, 2012 at 09:58

On the android line, read yesterday that Verizon alone shifted more android phones last quarter than Nokia sold wp7 phones worldwide.

Huawei wp8 phone looks similarly colourful from pics around net

ted12345  Oct. 19, 2012 at 10:12

Simple sack E(f)lop and start making some Android handsets also , may be able to salvage some of the company in time

Pondlife  Oct. 20, 2012 at 10:39

If they could have used android for phones in a similar way to how Amazon did for tablets they could have kept some control too.

JanSt / MOD  Oct. 20, 2012 at 11:34

I can't even joke or speculate about this farce anymore.

Pondlife  Oct. 20, 2012 at 13:18

It could worse, you could have large numbers of shares in Nokia

Pondlife  Oct. 20, 2012 at 15:00

JanSt / MOD  Oct. 20, 2012 at 16:14

Print your own 920 dummy shell.

Good money-saving advice, sir. Thanks :D


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