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.
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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).
Sisvel International, a specialist company in managing intellectual property and maximizing the value of patent rights, has bought more than 450 patents originally filed by Nokia. 350 of these cover essential parts of the 2G (GSM), 3G (UMTS/WCDMA) and 4G (LTE) technologies. The other 100 or so cover video encoding optimization technologies. The acquired patents remain subject to certain prior agreements and Nokia is pre-licensed for all the patents as part of the acquisition.
Figures are now in from IDC for the world phone market in Quarter 3, 2011, showing the market flattening in the USA and Western Europe as saturation sets in. However, the proportion of smartphones in the overall mix continues to rise. Nokia is still king in terms of sheer numbers, selling over a hundred million phones in the quarter, although Samsung is catching up relatively quickly. IDC's stats table is quoted below, though we don't yet have a breakdown of smartphone-only sales.
More than 35,000 content items (apps and games) have now been published to the Windows Phone Marketplace. Between 80 and 150 items are being added every day, of which 18% are games and 72% are apps. Just under 50% of these are free, 19% are paid with a trial and 30% are paid only. It took Microsoft just over a year to reach this milestone, a figure that compares well with competing application stores.
Nokia has released its Q3 2011 results, reporting an operating loss of -€71 million, with net sales of €8.980 billion (down 13% YoY). Nokia's Devices and Services division's profits were €132 million. Margins in devices and services were 2.4% (down from 11.3 % in Q3 2010 and up from -4.2% in Q2 2011). Total smartphone device sales were 16.8 million, compared with 27.2 million units in Q3 2010 (down 34% YoY) and 16.7 million units in Q2 2011 (up 1%, QoQ). The results were ahead of expectations and suggest the company has started on the road to recovery.
Nokia has released its Q2 2011 results, reporting an operating loss of -€487 million, with net sales of €9.275 billion (down 7% YoY). Nokia's Devices and Services division's losses were -€247 million. Margins in devices and services were -4.5% (down 14% YoY and down 14.2% QoQ). However, non-IFRS operating profit was €391 million (down 41% YoY and down 44% QoQ), with Devices and Services non-IFRS profit at €369 million, and margins at 6.7%. Total smartphone device sales were 16.7 million, compared with 24 million units in Q2 2010 (down 34% YoY) and 25.2 million units in Q1 2011 (down 31%, QoQ).
Yesterday Microsoft offered the media a preview of Mango, the next release of the Windows Phone platform. The release will deliver more than 500 new features, with an emphasis on communication, apps and the Internet. Mango will also see wider language support, the addition of 1500 APIs for developers and significant performance improvements. Mango is scheduled to arrive in the autumn and will be the version that Nokia uses on its first Windows Phone devices, scheduled to appear in 2012 in quantity.