Some good news from Nokia at last. The company reports sales ahead of expectations along with “underlying profitability” in the fourth quarter of 2012.
Success for Windows Phone? It is a positive sign, but short of a breakthrough. Here are the details. I am showing three quarters for comparison: fourth quarter 2011, third quarter 2012, and fourth quarter 2012.
|Q4 2011||Q3 2012||Q4 2012|
|Mobile phone units, millions||113.5||77||79.6|
|Smartphone units, millions (Lumia in brackets)||19.6 (?)||6.3 (2.9)||6.6 (4.4)|
Looking in more detail at the Smartphone units, the Q4 2011 smartphones were mostly Symbian. Lumia (Windows Phone) was launched in October 2011 but with only two models and limited territories (it also sold short of expectations, and rumour has it, with a high rate of returns).
Lumia units increased by 51% over Q3, but considering that Q3 was a bad quarter as customers waited for Windows Phone 8 that is a decent but not stunning improvement. Lumia units exceeded Symbian units, but remain far short of what Nokia used to achieve with Symbian.
There is also a warning about Q1 2013:
Seasonality and competitive environment are expected to have a negative impact on the first quarter 2013 underlying profitability for Devices & Services, compared to the fourth quarter 2012.
That said, here is what Nokia said in the Q3 release:
Nokia expects the fourth quarter 2012 to be a challenging quarter in Smart Devices, with a lower-than-normal benefit from seasonality in volumes, primarily due to product transitions and our ramp up plan for our new devices.
It looks as if the company prefers to be cautious in its financial statements.