The Finnish manufacturer’s devices and services business (now owned by Microsoft) saw net sales of €2.6 billion (£2.1 billion) in the fourth quarter of 2013, compared with €3.7 billion (£3 billion) in the fourth quarter of 2012
Nokia’s final quarter as a mobile manufacturer saw device sales plummet 29 per cent year on year.
The Finnish manufacturer’s devices and services business (now owned by Microsoft) saw net sales of €2.6 billion (£2.1 billion) in the fourth quarter of 2013, compared with €3.7 billion (£3 billion) in the fourth quarter of 2012. This represents a decline of 29 per cent.
It is also a five per cent decline from third quarter sales, which totalled €2.8 billion (£2.3 billion).
During a conference call with investors the company declined to provide a breakdown of Lumia sales, although it did say smartphone sales declined between Q3 and Q4 and that sales of traditional mobile phones were “flat”.
It is understood to have sold 30 million handsets in total during 2013, including 8.2 million in the last quarter. This is down from third quarter sales of 8.8 million (see here), an all-time high for the Lumia range.
The division lost €198 million (£163 million) in Q4 of last year, compared with a profit of €97 million (£80 million) in the same period in 2012. Losses for the preceding quarter (Q3 2013) were €145 million (£119 million).
However total losses for the devices and services division in 2013 were €590 million (£485 million), compared with €1,479 million (£1,214 million) in 2012.
The sale of Nokia’s devices and services business to Microsoft was approved by Nokia shareholders in November, and by EU and US regulatory authorities in December.
For this reason Nokia reported its Q4 results for the division under “discontinued operations”. Its other divisions – “continuing businesses” – include Nokia Siemens Networks (NSN), HERE and Advanced Technologies and recorded a “healthy” underlying operating margin of 12 per cent in Q4.
This is compared to minus 7.5 per cent for its devices and services division.
Nokia chairman and interim CEO Risto Siilasmaa said: “The fourth quarter of 2013 was a watershed moment in Nokia’s history. Having received overwhelmingly strong support from our shareholders at our extraordinary general meeting in November for the sale of our phones business to Microsoft, we are diligently working towards defining Nokia’s future direction.
“I am pleased with the progress we have made thus far in our strategy evaluation and excited by the opportunities ahead for each of our three continuing businesses: NSN, HERE and Advanced Technologies.”