Telecom Lead Team:
Mobile giant Nokia has posted 18 percent decrease in sales from its devices
business in 2011 at EUR 23.94 billion compared with EUR 29.13 billion in 2010.
In Q4 2011,
the turnover from devices was EUR 5.99 billion as compared with EUR 8.49
billion, registering 29 percent drop.
Nokia sold
417.1 million mobile devices (both feature mobile phones and smart phones) in
2011 as compared with 452.9 million in 2010, showing 8 percent drop.
In Q4 2011,
the number of devices sold was 113.5 million against 123.7 million in Q4 2010.
The mobile
major sold 77.3 million smart phones in 2011 as against 103.6 million smart
phones in 2010. The 25 percent drop in smart phone is significant as Nokia introduced
Lumia phones in Q4 with much hype.
However,
information technology major Microsoft has paid $250 million to mobile major
Nokia towards the first quarterly platform support payment.
Nokia – Microsoft sign partnership agreement
Nokia will
be accelerating investment in Lumia range of smartphones, having sold well over
1 million Lumia devices to date. In October 2011, just six months after signing
an agreement with Microsoft, Nokia introduced its first two devices based on
the Windows Phones platform – the Nokia Lumia 800 and the Nokia Lumia 710.
Nokia and AT&T to introduce Nokia Lumia 900 on 4G LTE
network
Nokia posted
3 percent decrease in mobile phones by selling 339.8 million phones in 2011
from 349.2 million in 2010. Despite the cost effective Asha phone launch, Nokia
reported 1 percent decrease in mobile phone at 93.9 million in Q4 2011 from 95
million in Q4 2010. In October, Nokia introduced the Asha 200, 201, 300 and
303, which brought new mobile phones into 76 markets around the world.
On a
year-on-year basis, the overall decrease in its Devices & Services ASP in
the fitsth quarter 2011 was driven primarily by the lower ASP in Mobile Phones
and, to a lesser extent, Smart Devices, a higher proportion of Mobile Phones
sales, the negative impact from foreign currency hedging and the appreciation
of the Euro against certain currencies, partially offset by a positive impact
from lower deferral of revenue related to services sold in combination with its
devices.
On a
sequential basis, the overall increase in its Devices & Services ASP in the
fifth quarter 2011 was driven primarily by a product mix shift towards Smart
Devices, the depreciation of the Euro against certain currencies and a lower
deferral of revenue related to services sold in combination with its devices,
partially offset by a negative impact from foreign currency hedging, pricing
pressure and lower IPR royalty income as the third quarter 2011 ASP benefited
from the recognition of non-recurring IPR royalty income.
