Nokia's Q2 earnings: the good, the bad and the ugly

Nokia's Q2 earnings: the good, the bad and the uglyNokia's latest quarterly figures are out, and it's pretty much as we expected: Lumia Windows Phone sales are rising steadily, but there's still plenty to be concerned about elsewhere.

Overall Nokia shifted 7.4m Lumias between April and June, 21% up on Q1, but average selling price has dropped considerably and feature phone sales continue to drop.

The result of it all is a €115m loss, which beats the €824m posted over the same period last year but isn't exactly good news. That's what investors think, anyway, with Nokia's share price losing 5% of its value straight after the results emerged yesterday, though it has recovered somewhat since then.

The problem is that average selling price, which fell from €191 to €157 in just three months to negate any gains made in number of units sold.

That's surely down to the release of the low-end Nokia Lumia 520, which is reportedly the best-selling Windows Phone at the moment. But while any increase in sales is obviously good, the bottom end of the spectrum isn't where Nokia needs its numbers to be growing.

Feature phone sales, meanwhile, continue to fade, dropping from 55.8m units to 53.7m. Compared to Q2 last year, though, the difference is a massive 20 million.

Nokia will no doubt try to spin the positives and gloss over the negatives, but the fact is Nokia is still struggling to convince anyone its Windows Phone adventure has a happy ending.

In fact, the main consolation is probably that no matter how bleak thinks look for Nokia, it's even worse for BlackBerry right now.

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2 comments

Mattevansc3  Jul. 19, 2013 at 13:12

That loss figure includes a $500 million dollar payment to Siemens in relation to Nokia's buyout of their joint venture, the total being $1.5 billion spread over three quarters, without that Nokia would have posted a $200-300 million profit that quarter so its not as bad as it seems.

JanSt / MOD  Jul. 19, 2013 at 13:57

Matt, does it also include the money M$ throws at Nokia?

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