PREVIOUS ARTICLENEXT ARTICLE
NEWS
By 12 April 2012 | Categories: news

0

Nokia has provided preliminary information about certain aspects of its Q1 2012 financial performance, which include a lowered Q1 2012 outlook for the company’s Devices and Services business. The full financial report is due next week.

According to the Finnish firm, multiple factors negatively affected its Devices and Services unit, to a greater extent than previously expected during the Q1 2012. These factors include “competitive industry dynamics”, that the Espoo-based phone giant explained adversely affected net sales of its feature phones and smartphones, especially in India, the Middle East and Africa as well as China.

Nokia currently estimates that its Devices and Services division produced total Q1 2012 net sales of €4.2 billion. This figure is comprised of mobile phone net sales amounting to €2.3 billion (71 million units) and smartphone net sales of €1.7 billion (12 million units). Both these sales tallies are down from Q4 2011’s 93.9 million mobile phones and 19.6 million smartphone sales.

One positive factor is that out of that total 12 million smartphones, it managed to sell more than two million Windows Phone OS-powered Lumia devices during Q1 2012. This is double the figure (one million) it sold within its fiscal Q4 2011 period. Nokia stated that it has seen sequential growth in Lumia smartphone activations every month, since kicking-off sales in November of last year.

“Our disappointing Devices & Services first quarter 2012 financial results and outlook for the second quarter 2012 illustrates that our Devices & Services business continues to be in the midst of transition,” explained Stephen Elop, president and CEO of Nokia.

“Within our Smart Devices business unit, we have established early momentum with Lumia, and we are increasing our investments in Lumia to achieve market success. Our operator and distributor partners are providing solid support for Windows Phone as a third ecosystem, as evidenced most recently by the launch of the Lumia 900 by AT&T in the United States.”

In related news, Nokia also recently revealed that users employing its latest Symbian-powered handsets are now able to download the Microsoft Office Mobile app, which includes the mobile versions of Word, PowerPoint and Excel.

USER COMMENTS

Read
Magazine Online
TechSmart.co.za is South Africa's leading magazine for tech product reviews, tech news, videos, tech specs and gadgets.
Start reading now >
Download latest issue

Have Your Say


What new tech or developments are you most anticipating this year?
New smartphone announcements (7 votes)
Technological breakthroughs (11 votes)
Launch of new consoles, or notebooks (8 votes)
Innovative Artificial Intelligence solutions (7 votes)
Biotechnology or medical advancements (12 votes)
Better business applications (4 votes)