Shipments of smartphone range hit an all-time high, but manufacturer’s mobile business still posts a loss of €32 million
Nokia saw sales of its Lumia smartphones rise 32 per cent to 7.4 million units in Q2, but the manufacturer still made a loss of €32 million in its mobile business.
Despite the rise in quarterly shipments, it was down 27 per cent year-on-year from the 10.2 million smartphones shipped in Q2 2012.
Overall, Nokia shipped 61.1 million devices in the quarter, down a percentage point sequentially and 27 per cent year-on-year. Feature phone volumes were down four per cent from Q2 and 27 per cent from last year to 53.7 million units.
Sales were down six per cent from the previous quarter and 32 per cent from the same period last year to €2.72 billion, with smartphone sales static quarter-on-quarter and down 24 per cent from Q2 2012 to €1.2 billion. Feature phone sales fell 12 per cent sequentially and 39 per cent year-on-year to €1.4 billion.
Nokia, which made a profit of €4 million in Q1, made a loss of €32 million in this latest quarter. However, this is still a significant improvement from the €364 million loss made a year ago.
The average selling price (ASP) of its smartphones fell 18 per cent sequentially to €157 while there was also a fall of seven per cent in the ASP of its feature phones to €26.
On a group level, Nokia made a profit of €303 million, up 67 per cent from the €181 million profit it made in Q2. In the same period last year, it made a loss of €325 million. Sales were €5.7 billion, down three per cent sequentially and 24 per cent year-on-year.
Nokia president and CEO Stephen Elop (pictured) said: “We continue to focus on delivering meaningful differentiation to consumers around the world. We are very proud of the recent creations by our Lumia team, from the Lumia 520 – our most affordable Windows Phone 8 product which has enjoyed a strong start in markets like China, France, India, Thailand, the UK, the US and Vietnam – to the Lumia 1020, our star imaging product which we unveiled to the world last week.
“Overall, Lumia volumes grew to 7.4 million in the second quarter, the highest for any quarter so far and showing increasing momentum for the ecosystem. During the third quarter, we expect that our new Lumia products will drive a significant part of our Smart Devices revenue.”