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."
"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 Amazon.com,
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.
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