Symbian and Lumia pull down Nokia to report 19% dip in Q3 revenue
Telecom Lead India: Finnish phone and mobile broadband infrastructure maker Nokia has posted 19 percent dip in third quarter revenue to 7.24 billion euros. Inadequate strategies around Symbian and Lumia contributed to the decrease in revenue.
Revenue from Nokia’s main business divisions – devices (down 34 percent) and Nokia Siemens’ mobile broadband (up 3 percent) and location (down 6 percent) could not help the struggling company to show profits in third quarter.
Nokia’s third-quarter net loss widened to 969 million euros ($1.27 billion) from 68 million euros a year earlier.
Interestingly, Lumia Q3 volumes decreased quarter-on-quarter to 2.9 million units.
Nokia hopes that its new line of Lumia products will do well in the market.
Mobile Phones Q3 volumes increased quarter-on-quarter to 77 million units.
Asha full touch smartphones touched with volumes of 6.5 million units.
Stephen Elop, Nokia CEO, said: “As we expected, Q3 was a difficult quarter in our Devices & Services business; however, we are pleased that we shifted Nokia Group to operating profitability on a non-IFRS basis. In Q3, we continued to manage through a tough transitional quarter for our smart devices business as we shared the exciting innovation ahead with our new line of Lumia products.”
In the third quarter 2012, Nokia received a quarterly platform support payment of USD 250 million (approximately EUR 202 million).
Nokia reported 29 percent dip in devices revenue in Europe to 985 million euros.
The worst region was China at 78 percent decrease in sales during the third quarter. The decreases in Greater China net sales and volumes were primarily due to Symbian.
Asia Pacific did not assist Nokia to come out of the struggling period. Dip in sales in Asia Pacific was 18 percent.
The decreases in North America net sales and volumes were primarily due to Mobile Phones.
Decreases in net sales and volumes in North America were primarily due to lower operator and distributor demand for Lumia as well as its efforts to prepare distribution channel for the upcoming sales start of new devices.
Net sales in China decreased sequentially primarily due to lower net sales of our Lumia and Symbian devices, primarily reflecting competitive pressures. Volumes in China decreased sequentially primarily due to lower volumes of Symbian devices, primarily reflecting competitive pressures.
Nokia admitted that net sales in Europe decreased sequentially primarily due to lower net sales of our Symbian and Lumia products, partially offset by higher net sales of our Mobile Phones devices. Volumes in Europe increased sequentially primarily due to higher volumes of our Mobile Phones devices, partially offset by lower volumes of our Symbian and Lumia products.
However, Nokia said there was a year-on-year increase in its Smart Devices ASP in the third quarter 2012 due to a positive mix shift towards sales of our Lumia products which carry a higher ASP than Symbian devices, as well as a positive impact related to deferred revenue on services sold in combination with devices.