Nokia has released its Q3 2012 results, reporting an operating loss of €576 million, with net sales of €7.239 billion (down 19% YoY). Nokia's Devices and Services division's losses were €683 million. The margin in Devices and Services was -19.2% (down from 3.1% in Q3 2011 and down from -11.8% in Q2 2012). Total smartphone device sales were 6.3 million (2.9 million Lumia), compared with 16.8 million units in Q3 2011 (down 63% YoY) and 10.2 million units in Q2 2012 (down 38%, QoQ).
Recent News - General - Page 8
Microsoft has announced the launch of Xbox Music, its new all-in-one music service, which offers integrated services across PC, phone and TV. Drawing on a global catalogue of more than 30 million tracks, it offers download-to-own, subscription (Xbox Music Pass), and streaming music options. The service will be available on Windows 8, Windows Phone 8 and Xbox, replacing Microsoft's current Zune music service experience.
On Monday Kantar released its latest set of Worldpanel data about smartphone market share in the EU5 (UK, Germany, France, Italy, Spain), the US, Australia, Brazil and Mexico. The year-on-year figures showed mixed fortunes for Windows Phones with increased share in Europe (3.8% to 5%), but a fall in the US (3.5% to 2.7%). Brazil is another bright spot with market share increasing from 3.8% to 12.2%, Mexico, by contrast, show a small fall from 2.9% to 2.7%.
Big software house Digia has announced that it has 'signed an agreement to acquire Qt software technologies and Qt business from Nokia'. Once the acquisition is completed, Digia will become responsible for all the Qt activities formerly carried out by Nokia, including product development, licensing and service. Digia 'plans to quickly enable Qt on the Android, iOS and Windows 8 platforms'. As part of the transaction, a maximum of 125 people from Nokia will transfer to Digia, mostly based in Oslo, Norway and Berlin, Germany.
Nokia has released its Q2 2012 results, reporting an operating loss of €826 million, with net sales of €9.275 billion (down 19% YoY). Nokia's Devices and Services division's losses were €471 million. Margins in devices and services were -11.8% (down from -4% in Q2 2011 and down from -5.2% in Q1 2012). Total smartphone device sales were 10.2 million (4 million Lumia), compared with 16.7 million units in Q2 2011 (down 39% YoY) and 11.9 million units in Q1 2011 (down 14%, QoQ).
At today's Windows Phone Summit, Microsoft announced a new software update that will be available for existing Windows Phone handsets. Labelled Windows Phone 7.8, the update will feature some of the core elements of Windows Phone 8 that can be supported on the older hardware, including the new Start screen.
In a press release this morning, Nokia has revealed plans to "sharpen its strategy, improve its operating model and return the company to profitable growth". The company will be cutting up to 10,000 jobs by the end of 2013, closing its famed Salo factory in Finland, making a series of targeted investments around location and product experiences, making changes to improve the competitiveness of its feature phone business and making chnages to its leadership team.
Nokia also updated its financial guidance for Q2 2012, indicating that competitive industry dynamics are negatively affecting its smartphone business to a greater extent than previously expected. As a result non-IFRS Devices & Services operating margin will be below the Q1 2012 level of -3%.
When Microsoft and Nokia announced their partnership in February of last year, executives made it clear that the partnership would extend beyond smartphones into other business areas, such as location and mapping. The latest fruits of this collaboration are now apparent, with the addition of traffic information and geocoding algorithms, from the Nokia Where Platform, to Microsoft's Bing Maps.
Following last week's profits warning, Nokia has released its formal Q1 2012 Results, reporting a non-IFRS loss of EUR 260 million, on net sales of EUR 7.3 billion (down 29% YoY). Nokia's 'Devices and Services' division's loss was EUR 127 million, compared to a profit of EUR 292 million in Q4 2011). Total smartphone device sales were 11.9 million, compared with 24.2 million units in Q1 2011 (down 51% YoY) and 19.6 million units in Q4 2011 (down 39%, QoQ). Gross profit margins on smartphones in Q1 were 15.6% (down from 28.9% YoY). Quotes and comments below.
Ahead of the announcement of its quarterly results next week, Nokia has issued a statement warning that earnings, margins and device sales in its key Devices & Services division will be lower than expected for the first quarter of the year and that there will be little improvement in the second quarter. Nokia's current estimate for quarter one is that non-IFRS Devices & Services operating margins will be -3% (down from expected break even), with similar or lower figures anticipated for the second quarter.