2012-04-19, 11:34 AM
Revenue declined 30% to*€7.4 billion, or $9.7 billion USD last quarter, down from*€10.4 billion, or $13.6 billion in the same quarter last year. The company posted a massive*€1.3 billion loss, or $1.7 billion USD, which breaks down to a loss of*€0.25 per share. Smartphone sales plummeted 52% to 1.7 billion units in the first quarter, and net device sales dropped 40% to 4.2 billion units. (http://www.bgr.com/2012/04/19/nokia-posts-huge-1-7-billion-q1-loss-sales-boss-resigns-as-smartphone-sales-plummet-50/)
And in other news, the major European carriers have declared the Lumina launch a failure. (http://uk.reuters.com/article/2012/04/17/uk-nokia-telcos-idUKBRE83G08Z20120417)
A couple years ago, I predicted that MSFT would fail out of the mobile space by 2013, but I didn't think they woukd drag the one-time largest hardware manufacturer with them.
2012-04-19, 01:29 PM
I don't think MSFT can take any blame on this one.
Nokia was already sinking faster than the Titanic and they tried to use Windows Phone as a lifeline. That, IMHO was an extremely poor decision on Nokia's part.
If they had gone Android then they would have benefited from the ever growing eco-system and duked it out with Samsung/HTC based on cool H/W at the high end and cheap phones on the low end.
Windows Phone is/was the OS that nobody wanted. Betting the farm on that was just plain stupid.
2012-04-19, 02:00 PM
Until Microsoft starts shipping a Metro tablet, I think Windows phone sales will be disappointing. The two products (phone, tablet) complement each other and the average consumer would like to standardize on one OS.
2012-04-19, 05:13 PM
Did anyone expect anything less? What we're seeing here reflects the dead period in which Nokia was barely releasing anything of note, so it's no surprise their sales declined. They only just released the Lumia 900, and the 710 and 800 aren't especially old either.
It'll take a little while for them to break into a market dominated by iOS and Android; it was never going to happen overnight. They need to be a little patient.
2012-04-20, 08:46 AM
Perhaps I should have quoted the second link more thoroughly, but the European market has had these phones since before Christmas (the peak season and Nokia's strongest market) where they have absolutely cratered.
@jvincent makes a fair point, though. NOK and MSFT both arrived at this sorry state through their individual management decisions. The fact that they joined forces at the end didn't change their luck, it just makes for a bigger bonfire.
In the last two days, the Nokia EVP of sales resigned, as did the Microsoft VP of marketing for windows phone. I guess they need to distance themselves from this clown show if they hope to salvage their careers.
2012-04-20, 10:38 AM
A couple years ago, I predicted that MSFT would fail out of the mobile space by 2013, ...
If you really did that, by this time you should already be googling "edible crow meat". :)