Nokia global sales dip 19%, Asia-Pacific device sale surges

Telecom Lead Europe: Finnish mobile major Nokia has
posted consolidated net sales of EUR 7.5 billion for Q2 FY12, declined 19
percent, as compared to $9.2 billion for the same quarter a year earlier.


Nokia’s net sales grew 3 percent sequentially.


The company posted operating loss of EUR 474 million for
Q2 FY12, as compared to EUR 216 million operating loss for the same quarter
last year.


Nokia Devices & Services net sales for Q2 FY12
plunged 26 percent at EUR 4 billion, as compared to EUR 5.4 billion for the
same quarter a year earlier. Sequentially, net sales decreased by 5 percent.


Smart Devices net sales for Q2 FY12 plunged 34 percent at
EUR 1.54 billion, as compared to EUR 2.35 billion for the same quarter a year
ago. Smart Device net sale declined 10 percent sequentially.


Mobile phone net sales for Q2 FY12 down 11 percent at EUR
2.3 billion, against EUR 2.5 billion for the same quarter of FY11. In Q1,
Mobile phone net sales were EUR 2.3 billion.


Region-wise, Nokia Devices & Services net sales from
Europe recorded at EUR 1 billion, down 34 percent, against EUR 1.67 billion a
year earlier. Net sales from MEA recorded plunged 33 percent at EUR 663
million, against EUR 988 million for a year earlier period.


Net sales from Greater China dropped 41 percent at EUR
542 million, against EUR 913 million for Q2 FY11, whereas Asia-Pacific sales
dropped 13 percent at EUR 948 million in Q2 FY12, against EUR 1.08 billion a
year earlier.


North American net sales increased 45 percent at EUR 128
million, against EUR 88 million a year earlier. Latin American net sales
plunged 11 percent at EUR 646 million, as compared to 727 million a year


In terms of device shipments, Asia-Pacific has witnessed
growth of 17 percent at 28.6 million unit shipped, against 24.5 million
shipments in Q2 FY12.


Device shipments in Greater China and Europe plunged 30
percent and 17 percent Y-o-Y respectively. Device shipments in MEA stood at
19.4 million, down 5 percent, against 20.5 million for Q2 FY11.


Shipments in North America plunged massive 60 percent at
0.6 million, against 1.5 million in Q2 FY11. On the other hand, Latin America
device shipments recorded at 11.9 million, down 3 percent, against 12.3 million
in Q2 FY11.


Handset Shipments


During the quarter, Nokia shipped 83.7 million mobile
devices, down 5 percent, as compared to 88.5 million units shipped for the same
quarter of FY11 and declined 1 percent, as compared to Q1 FY12 shipments.


Smart Devices unit shipments plunged 39 percent at 10.2
million, against 16.7 million units shipped a year earlier. Sequentially, unit
shipments of smartphones plunged 14 percent.


However, Nokia Lumia Q2 volumes increased
quarter-on-quarter to 4 million units.


On a year-on-year basis, the decline in Smart Devices net
sales in Q2 FY12 was primarily due to lower Symbian volumes, partially offset
by sales of Nokia Lumia devices. In addition, Symbian ASPs decreased on a
year-on-year basis.


In North America, the sharp decline in sales of Symbian
devices was more than offset by sales of Nokia Lumia devices including the
Lumia 900 with AT&T and the Lumia 710 with T-Mobile.


Feature phone shipments grew 2 percent in Q2 FY12 at 73.5
million, as compared to 71.8 million units shipped for the same quarter a year


In the second quarter 2012, Nokia received a quarterly
platform support payment of EUR 196 million from Microsoft as device royalty


Nokia is taking action to manage through this transition
period. We shipped four million Lumia Smartphones in Q2, and we plan to provide
updates to current Lumia products over time, well beyond the launch of Windows
Phone 8,” said Stephen Elop, Nokia CEO


We believe the Windows Phone 8 launch will be an
important catalyst for Lumia. During the quarter, we demonstrated stability in
our feature phone business, and enhanced our competitiveness with the
introduction of our first full touch Asha devices,” Elop added.


Nokia has reduced its outlook, due to competitive
industry dynamics, which is continuing to negatively affect the Smart Devices
and Mobile Phones business units; consumer demand particularly related to t
Lumia products and the macroeconomic environment.


Nokia expects its Devices & Services operating margin
in the third quarter 2012 to be similar to the second quarter 2012 level of
negative 9.1 percent, plus or minus four percentage points.


Nokia expects the third quarter 2012 to be a challenging
quarter in Smart Devices due to product transitions.


Nokia’s Location and Commerce business segment has posted
increase 4 percent increase in quarter sales at EUR 283 million in Q2 FY12, as
compared to EUR 271 million for Q2 Fy11.


Nokia Siemens Networks has posted 8 percent dip in second
quarter sales to EUR 3.34 billion from EUR 3.64 billion in the same quarter
previous year.


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