Nokia sales down 9 percent to EUR 38.65 billion in 2011

By Telecom
Lead Team: Mobile major Nokia has reported 9 percent decrease in sales
(including Nokia devices, Nokia Siemens and location business) at EUR 38.65
billion in 2011 compared with EUR 42.44 billion in 2010.


Q4 2011
sales were down by 21 percent to EUR 10 billion from EUR 12.65 billion.


reported an operating loss of EUR 1.07 billion in 2011 as against an operating profit
of EUR 2.07 billion in 2011.


In Q4 2011,
the operating loss was EUR 954 million against operating profit of EUR 884




In 2011,
Nokia devices business generated 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.


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.


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

Nokia posted
3 percent drop 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. 


Siemens Networks


Nokia Siemens Networks has registered 11 percent increase in 2011 sales
at EUR 14.04 billion in 2011 compared with EUR 12.66 billion in 2010.


Operating loss in 2011 was EUR 300 million as compared with EUR 686
million in the previous year. Q4 2011 operating profit was EUR 67 million as
against EUR 1 million in Q4 2010.


Nokia Siemens Networks completed the acquisition of Motorola Solutions’
networks assets on April 30, 2011. Accordingly, the results of Nokia Siemens
Networks for the fourth quarter 2011 are not directly comparable to its results
for the fourth quarter 2010.


In Q4 2011, Nokia Siemens Networks’ sales decreased 4 percent to EUR
3.81 billion from EUR 3.96 billion in Q4 2010.


fourth quarter of 2011 marked a significant step in Nokia’s transformation.
Most notably, in Q4 we introduced new mobile phones and smartphones, which
resulted from the strategy shift in our Devices & Services business. Overall,
we are pleased with the performance of our mobile phones business, which
benefited in Q4 from sequential double-digit percentage growth in our dual SIM
business, with particular strength in India, Middle East and Africa and South
East Asia. We
are building on this foundation with R&D investments as we continue our
journey to connect the next billion to the Internet,” said Stephen Elop, CEO of


expects its non-IFRS Devices & Services operating margin in the first
quarter 2012 to be around breakeven, ranging either above or below by
approximately 2 percentage points.


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