Nokia rises high on reported Lumia sales surge

According to "preliminary information on certain aspects" of the company's fiscal fourth-quarter performance, Nokia estimates that its Devices & Services division has "exceeded expectations and achieved underlying profitability" in the last quarter.
It attributes this achievement to its mobile phone business unit and Lumia phone portfolio, in particular, which delivered better-than-expected results. Nokia adds that lower operating expenses helped the situation as well.

Nokia shipped 4.4 million Lumia devices in the fourth quarter of 2012, bringing its total smartphone shipments to 6.6 million devices, the first increase in smartphone shipment numbers in a year.
But the Finnish handset maker still expects its main devices and services unit to record a fall in net sales in the fourth quarter of 2012, to €3.9 billion ($5.10 billion) from €6 billion a year earlier, with total device shipments projected at 86.3 million units, down from 113.5 million.
The company also expects its results for the first quarter of 2013 to be pressured by seasonality and the competitive mobile environment, and it is currently battling to overcome supply constraints related to its latest products.
"Demand for our products has been greater than the available supply," Mr. Elop said. "If you went into a store to buy a new Nokia, there were times when our devices weren't available, so indeed we could have sold more Lumias."

BETANEWS:  4.4 million Nokia Lumia sales is not impressive at all

Nokia is due to report its fourth-quarter earnings on Jan. 24, and the company said it "achieved underlying profitability" during the period.
While Nokia's Lumia shipment numbers look promising, they don't take into account pricing. Prices of Lumia phones were heavily discounted during the holidays to boost demand.

In the U.S., for instance, Lumias were on sale for as little as $39 during the holiday spree on, or $60 cheaper than the initial price tag. Other lower-end Lumias were available free at other carriers, such as T-Mobile USA and Verizon Wireless, with a two-year contract.
This is relatively good news for once the largest cellphone maker in the world (pre iPhone world) although we need to wait for the official figures, which Nokia will publish on January 24 to see if the holyday sales surge is sustained.


Nokia's Lumia Sales Boost Hope For Company Turnaround


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