Telecom Lead Europe: Mobile
major Nokia has reported 26 percent decline in net sales at EUR 7.4 billion
(including Nokia devices, Nokia Siemens and location business) for Q1
2012, against EUR 10.4 billion for Q1 2011.
Nokia reported an operating loss of EUR 1.3 billion for Q1
2012, against operating profit of EUR 439 million for Q1 2011.
The company said that losses incurred due to greater than
expected competitive challenges and seasonality; reported losses also primarily
driven by charges related to restructuring activities.
Nokia Devices
Nokia’s net sales plunged 40 percent in Q1 2012 at EUR 4.2
billion, against EUR 7 billion for Q1 2011.From its smartphones sales, Nokia
earned EUR1.7 billion, decreased by 32 percent, compared to EUR 3.5 billion for
Q1 2011.
The company sold 82.7 million devices (both feature mobile
phones and smart phones) in Q1 2012, compared to EUR 108.5 in Q1 2011, which
shows 24 percent decline.
Nokia sold 11.9 million smartphones in Q112, against 24.2
million in Q111, showing 51 percent decline.
In Q1 2012, Nokia sold more than 2 million Lumia devices. In
order to improve its Lumia sales, the company has expanded its Lumia portfolio
with mid-end smartphones such as Lumia 610, Lumia 610 NFC and Lumia 900 in Q1
2012.
The company has also expanded its geographic coverage to 45
countries currently (31 new countries in Q1). Also, the company is encouraging
launch of Lumia 900 with AT&T in US in April.
The Windows Phone ecosystem has also attracted more
developers and has expanded rapidly with more than 80,000 applications
available.
Nokia and technology giant Microsoft have recently
agreed to invest up to 18 million euros into a newly established mobile
application development program at Aalto University during the next three
years.
The investment will help in driving innovation and business
opportunities in Finland’s mobile ecosystem and beyond through this mobile
application development program.
Nokia sold 70.8 million feature phones in this quarter,
compared to 84.3 million devices in Q1 2011, showing 16 percent decline. Nokia
expanded its feature phone portfolio with 7 new Asha products in Q112.
The company plans to accelerate and substantially deepen
Devices & Services cost savings, consistent with strategic focus. Nokia
will share further details as quickly as possible.
“We are navigating through a significant company
transition in an industry environment that continues to evolve and shift
quickly. Over the last year we have made progress on our new strategy, but we
have faced greater than expected competitive challenges,” said Stephen Elop,
Nokia CEO.
The CEO also added that the lower price tiers of our
industry are undergoing a structural change and the company is planning to
renew its Series 40 platform in Q2 2012.
Nokia India revenue dips 1% to 2.92 billion euros in 2011
Nokia India revenue (including Nokia devices, Nokia Siemens,
and Navteq business revenues) decreased to EUR 2.923 billion in 2011 from EUR
2.952 billion in 2010.
