Nokia triples quarterly Lumia sales to 8.8m from a year ago

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Shipments of the manufacturer’s smartphone range hits another all-time high, but its devices and services business still makes a loss of €47 million

Nokia sold 8.8 million smartphones Q3, up 19 per cent from the previous quarter and triple the number it sold in the same period a year ago.

The manufacturer said this rise reflected its recently broadened range and strong customer demand, particularly for the Lumia 520.

Overall, smartphone volumes increased quarterly by three million to 14.7 million units, with the remaining number made up of 5.9 million Asha full-touch smaertphones sold.

Sales in its devices and services business were up six per cent sequentially but down 19 per cent year-on-year to €2.898 billion.

Smartphone sales were €1.254 billion – up quarterly and from a year ago by eight and 28 per cent respectively – while feature phone sales rose six per cent sequentially but down 37 per cent year-on-year to €1489 billion.

However, Nokia’s loss increased slightly from the previous quarter from €32 million to €47 million.

Overall average selling price (ASP) remained stable on a quarterly basis but was up five per cent to €45. Smartphone ASP was €143, down nine per cent sequentially and eight per cent year-on-year, while feature phone ASP rose four per cent from Q2 but was down 13 per cent from last year to €27.

In the nine months this year, sales within its devices and services business were down 28 per cent year-on-year to €8.51 billion. Smartphone sales fell 15 per cent to €3.582 billion while feature phone sales decreased 36 per cent to €4.484 billion.

Mobile device volumes fell 25 per cent to 187.6 million. Smartphone volumes were down 21 per cent to 22.3 million, with the remainder made up of 165.3 million feature phones, which represented a decrease of 25 per cent.

It made a loss of €75 million over the three quarters but this compares to a loss of €742 million made in the same nine month period last year.

Overall mobile ASP was down four per cent to €45. Smartphone ASP rose by eight per cent to €161 while feature phone ASP fell 16 per cent to €27.

In Q3, Nokia Group sales fell marginally by a percentage point from Q2 and by 22 per cent from a year ago to €5.662 billion. Over the nine months, this was down by 22 per cent €17.209 billion compared to the same period in 2012.

It made an operating profit of €215 million, which was down 29 per cent sequentially but up 139 per cent from a year ago. Over the three quarters, it made an operating profit of €699, which compares to the loss of €493 million reported a year ago.

Nokia chairman and interim CEO Risto Siilasmaa (pictured) said: “Subject to the planned completion of the Microsoft transaction, Nokia will have three established businesses: NSN, HERE and Advanced Technologies.

“Our strategy work is making good progress and it has already become clear that there are meaningful opportunities for all of our business areas: NSN, HERE and Advanced Technologies. In all of these businesses, we have strong assets that we continue to invest in for the long term benefit of our customers and shareholders.”

Nokia CFO and interim president Timo Ihamuotila added: “The third quarter was among the most transformative in our company’s history. We became the full owner of NSN and we agreed on the sale of our handset operations to Microsoft, transactions we believe will radically reshape the future of Nokia for the better.

“Subject to the completion of the Microsoft transaction, Nokia will have significantly improved earnings profile, strong financial position and a solid foundation from which to invest.”

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