Nokia Returns to Profitability

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McCrazieGoalz

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Nokia has released its results for Q4 2012.

Here are some of the highlights of the report:
- 4.4million Lumias sold (up from 2.9million in Q3 2012)
- 86.3million mobile phones sold (up from 77million in Q3 2012)
- Expected profit/loss; 0 - 2%

This is encouraging news as this indicates that there was a real demand for the Lumia 920 as opposed to shortages being the main cause of the scarcity of the phone.

Read one of the articles that speaks of Nokia's Q4 results here.

Reuters - Nokia posts better than expected results, shares jump 19%.

As you can hear from the quoted article - scepticism still remains. The writer is not convinced that 4.4million Lumias in Q4 and 86.3million overall number of devices is a good indication of Nokia's comeback.

Here are my reasons for expecting better and better results from Nokia from each successive quarter in 2013.

- Q4 was less than half a quarter of sales with unexpectedly huge demand for which Nokia had to ramp up production (the first Lumias were only sold in mid-November)
- Lumias are only available in India and China now (they missed the Christmas season)
- China's festive season is in February
- Win8 is selling well considering all the pessimism that surrounds it (pretty much like that which surrounded Nokia's comeback)
- Having MS Office on mobile is a big plus for Lumias and WP
- This is Nokia we are talking about
- They will be releasing a tablet soon
- Nokia is now cool again with its Lumia devices
- Nokia has a number of low end devices in the pipeline with some already on our shores like the Lumia 510
- Being ultra cheap (like bottom of the barrel Android phones) may not be the best strategy as this strategy tends to cheapen the overall image of the brand. I am glad Nokia is not following this strategy (yet?). Lumia 7.x phones like Lumia 610 and 510 (or is it the 505) certainly have a lot more panache than Galaxy Pockets (IMO). They have a higher profit margin and a greater coolness factor

Having not seen the actual Nokia report yet, I am a little disappointed that the sales were 4.4million. There were some speculations that Lumias were 7million in Q4. However, I am very optimistic that Q1 2013 will exceed Q4 2012 in sales primarily because of the Chinese market in which it has a good following.

My thoughts.

Yours?
 
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They decided to sell their stuff as doorstops instead. Sales up 50%. :p

Until the Win app market is in a better shape Nokia & WP isn't going anywhere.
 
HavocXphere said:
They decided to sell their stuff as doorstops instead. Sales up 50%. :p

Until the Win app market is in a better shape Nokia & WP isn't going anywhere.
Click to expand...

Some seem to believe that it is not Nokia and WP that need to be worried. It is infact Android that should be looking over its shoulders. Read here (Android is dead - Nokia Triumphs). lol

I'll be the first admit that SeekingAlpha seems to have a collection of fruitcakes. But, they all thought that of Einstein too.
 
Personally I hope Nokia make a strong return to profitability. Healthy competition is good news for the consumer.
 
McCrazieGoalz said:
Some seem to believe that it is not Nokia and WP that need to be worried. It is infact Android that should be looking over its shoulders. Read here (Android is dead - Nokia Triumphs). lol

I'll be the first admit that SeekingAlpha seems to have a collection of fruitcakes. But, they all thought that of Einstein too.
Click to expand...
Yeah that guy thinks Android will disappear due to security flaws and malware, biggest load of crap I've ever read, making a mountain out of a molehill, anyway the amount of malware shows how popular an OS is, which is why Windows has much more malware than Mac, but funny thing is it hasn't lost marketshare due to it. I would keep my investments far from these idiots.
 
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McCrazieGoalz said:
- Q4 was less than half a quarter of sales with unexpectedly huge demand for which Nokia had to ramp up production (the first Lumias were only sold in mid-November)
- Lumias are only available in India and China now (they missed the Christmas season)
- China's festive season is in February
- Win8 is selling well considering all the pessimism that surrounds it (pretty much like that which surrounded Nokia's comeback)
- Having MS Office on mobile is a big plus for Lumias and WP
- This is Nokia we are talking about
- They will be releasing a tablet soon
- Nokia is now cool again with its Lumia devices
- Nokia has a number of low end devices in the pipeline with some already on our shores like the Lumia 510
- Being ultra cheap (like bottom of the barrel Android phones) may not be the best strategy as this strategy tends to cheapen the overall image of the brand. I am glad Nokia is not following this strategy (yet?). Lumia 7.x phones like Lumia 610 and 510 (or is it the 505) certainly have a lot more panache than Galaxy Pockets (IMO). They have a higher profit margin and a greater coolness factor
Click to expand...

1. Yes, mid-November 2011 for the 800, with the 710, 610 and 900 being available since January and April respectively. So that idea is a load, sorry to say.
2. No excuse for the overall smallish numbers if, in a year, they could not convince themselves that they would have sufficient uptake in those markets.
3. Sort of discredits the point you made above, even if inaccurate. Chinese New Year is in February.
4. Selling well in comparison to what exactly? Apple, in the US alone, sold more than double the amount Nokia mentioned for the Lumia. Even Nokia's Asha lineup sold more than double the Lumia range. A third of their smartphone sales were not Lumia's.
5. Right... Because smartphones have missed this for all these years? Grasping here sir...
6. Same Nokia that held onto a self proclaimed "burning platform" and needed a bailout fromm Microsoft, which provided those WP8 devices you so proudly support? Yes, this is Nokia.
7. If they get the hardware and software intergration right- this will be something good. I do have hopes for this.
8. Um, no. That is your opinion. (In fairness, I thought that the N9 was still the coolest device around, but understand how subjective that statement is).
9. This is again speculative. Most of Android's sales were from the low end sector of the market, with markets like China and India booming. Given that the lack of availability, according to you, in those markets, is apparently a factor in the Lumia ranges low sales, do you really think that competing in a higher bracket to the likes of the Galaxy Pocket will help sales? Logic, and the consumer, dictates no. One would think that a vendor trying to get a foothold into an immensely competitive market would drop prices initially, to gain some traction. Even Google does this with their Nexus lineup.

Nokia may have strong growth this year, and I sincerely hope for this because the market needs more competition (always does). I just think that Q4 2012 is too early to start speculating on the future of WP8. Especially given how quickly the market trends change (look at the smartphone buying trends in the US between Q3 and Q4).

Having not seen the actual Nokia report yet, I am a little disappointed that the sales were 4.4million. There were some speculations that Lumias were 7million in Q4. However, I am very optimistic that Q1 2013 will exceed Q4 2012 in sales primarily because of the Chinese market in which it has a good following.
Click to expand...

Disappointed? Why? WP8 is not immensely popular, and they sold more phones than in their previous best quarter. This is a step forwards.
 
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McCrazieGoalz said:
Some seem to believe that it is not Nokia and WP that need to be worried. It is infact Android that should be looking over its shoulders. Read here (Android is dead - Nokia Triumphs). lol

I'll be the first admit that SeekingAlpha seems to have a collection of fruitcakes. But, they all thought that of Einstein too.
Click to expand...

This was pretty much garbage. As one of the comments stated:

4.4 Million phones in the busiest quarter of the year as the world's largest advertising campaign.

I am not sure Google will be raising the white flag any time soon.
Click to expand...
 
Always using 2 phones and swop them every week or two weeks. Note2 and a Iphone 4s. Sold the Iphone and bought a Lumia 920. Just love this phone, nice alternative from android. Using it for 2 weeks now and I think the Note2 is in for a long rest. Every app My 2 cents.
 
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