Nokia today announced that its Q4 2012 results will be better than previously expected, with the key Devices & Services division's non-IFRS operating margin expected to be between break even and 2 percent. Previously the company had indicated this would be -6%, with a +/-4% range. Nokia also currently estimates that it sold 6.6 million smartphones (4.4 million Lumia, 2.2 million Symbian) in the last quarter. Mobile phone sales were 86.3 million, and, of these, 9.3 million were Asha full touch devices, which are sometimes classified as smartphones (in which case, a total of 15.9 million smartphones).
Recent News - Industry - Page 4
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).
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%.
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.
Microsoft held an event in Beijing today to formally mark the arrival of Windows Phone in China. Windows Phone was shown running a Chinese-language interface, with support for both simplified and traditional Chinese and it was announced there are now more than 2,000 Chinese language apps in the Windows Phone Marketplace.
Most of the numbers are now in for Q4, 2011 and, while some are estimates, we now have a pretty good idea of the state of the mobile industry for the last quarter. Phones grew 6% year on year, smartphones by a whopping 63%, with the latter now at 36% of the overall market. The top three companies were the same by either metric - Apple, Samsung and Nokia are way ahead of the rest.
Nokia has released its Q4 2011 results, reporting an operating loss of €954 million, with net sales of €10.0 billion (down 21% YoY). Nokia's Devices and Services division's profits were €203 million. Margins in devices and services were 3.4% (down from 12.7 % on Q4 2010 and up from 3.1% in Q3 2011). Total smartphone device sales were 19.6 million, compared with 28.6 million units in Q4 2010 (down 31% YoY) and 16.8 million units in Q3 2011 (up 17%, QoQ).