Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • Mobile

    Nokia Posts Best Lumia Sales to Date, but Still $298M Loss

    By
    Michelle Maisto
    -
    July 18, 2013
    Share
    Facebook
    Twitter
    Linkedin

      Nokia sold 7.4 million Lumia smartphones during its second quarter—a 32 percent year-on-year increase and its strongest Lumia sales tally to date.

      But the Finnish phone maker, once the reigning world leader in mobile phone sales, still posted a $298 million loss, coming in below analyst estimates.

      Offering small boosts were Nokia’s Here mapping software, which is making its way to consumer fingertips through deals with automakers, in addition to smartphones, and its Nokia Siemens Networks (NSN) investment. Nokia owns half of the telecom supplier and recently made a bid to purchase the rest from Siemens for $2.2 billion.

      On the group level, Nokia said it made an “underlying operating profit” for the fourth consecutive quarter.

      “Given the market conditions,” Nokia CEO Stephen Elop said during the July 18 earnings call, “we remain focused on executing our strategy, improving the competitiveness of our products, effectively managing our costs and moving with urgency.”

      Elop pointed out that Nokia started the “ramp up” of its higher-end Lumia devices at the end of the quarter and so saw “limited impact” from these devices.

      On July 11, Nokia introduced the Lumia 1020, a Windows Phone-running smartphone with a 4.5-inch display and a camera that no other smartphone comes close to. AT&T CEO Ralph de la Vega, announcing that AT&T will begin selling the phone July 26, said that everyone he shows the phone to answers with the same word: “Wow.”

      The phone will sell for $299 with a two-year contract—a challenging price point for a company that continues to struggle to take back market share from Samsung and Apple and an operating system that’s slowly getting its feet under it but is generally considered a bust.

      Gartner analyst Carolina Milanesi tweeted during a Webcast introducing the 1020 that its price was necessary to “establish it as true flagship” (if not also to cover the intense R&D that no doubt went into the device). “Promotions can always be run if needed,” she added.

      During the second quarter, however, Nokia’s focus was chasing the sub-$100 market with the Asha 501, which Elop said did well in India, Thailand and Vietnam. In China, India and Nigeria, the company also generated “a lot of consumer excitement” with its sub-$70 Nokia 207 and Nokia 208—devices that provide “fast Internet access,” said Elop.

      As at the high-end market, Nokia is racing to court consumers away from the most-affordable offerings from Samsung, and Apple is expected this year to introduce a sub-$100 iPhone for emerging markets.

      In the United States, where Nokia continues to sell only about half a million units per quarter, Elop said Nokia has had some success with the Lumia 928 at Verizon and the Lumia 520 at T-Mobile, and the Lumia 1020 will offer AT&T something “fresh” for the first time since November.

      “We think that’s really important,” said Elop. “So … we have to break through. We know there is a lot of hard work ahead, but we remain committed to America.”

      Concluding his remarks, Elop repeated that he’s well aware of Nokia’s need to succeed and do it quickly. (Elop confirmed that, in a cost-saving measure, Nokia will continue to tighten its ranks where it can.)

      “We recognize that in this environment we must operate with urgency and continue to differentiate our products with new innovations and design that capture consumers’ attention,” he said. “The entire Nokia team recognizes we have lots of hard work ahead.”

      Michelle Maisto
      Michelle Maisto has been covering the enterprise mobility space for a decade, beginning with Knowledge Management, Field Force Automation and eCRM, and most recently as the editor-in-chief of Mobile Enterprise magazine. She earned an MFA in nonfiction writing from Columbia University, and in her spare time obsesses about food. Her first book, The Gastronomy of Marriage, if forthcoming from Random House in September 2009.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×