Menu
Nokia sales disappoint as Microsoft readies phone group takeover

Nokia sales disappoint as Microsoft readies phone group takeover

Windows Phone sales dropped sequentially despite the holiday shopping season

Nokia's improving Lumia shipments came to a halt during the fourth quarter, bad news for Microsoft, which will soon take over the phone unit.

The Finnish company reported fourth-quarter sales of €3.48 billion (US$4.75 billion), down 21 percent year-on-year, and a net loss of €615 million, down from €3.1 billion a year earlier.(

Having won shareholder approval of the pending sale of its Devices & Services business to Microsoft last November, Nokia isn't including that part of the company in its total numbers, instead reporting that business as discontinued operations in its fourth quarter.

Revenue for the Devices & Services business was €2.6 billion, down 29 percent year on year.

For the first time, the company also didn't break out how many phones it sold, including its range of Windows Phone-based Lumia products. It did say that it shipped fewer phones overall, year-on-year, but that smartphone sales increased. From the third to the fourth quarter, however, the reverse was true: it sold fewer smartphones, but more phones overall.

The fourth quarter is traditionally a strong one for phone vendors, because of the holiday shopping season, so the smartphone sales drop is disappointing and bad news for Nokia and Microsoft, according to Francisco Jeronimo, research director for European mobile devices at IDC. Before the fourth quarter, Lumia volumes had continually increased last year.

The deal with Microsoft is expected to close before the end of March. Once Microsoft has taken control, it has many decisions to make, including brand alignment, how the devices business should be structured within Microsoft, and the level of autonomy it should have, Geoff Blaber, CCS Insight's vice president of research for the Americas, previously said.

Now it also has to add a way to increase smartphone shipments, if it wants Windows Phone to survive.

Send news tips and comments to mikael_ricknas@idg.com


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags MicrosoftsmartphonesMergers and acquisitionsNokiatabletsbusiness issuesfinancial resultshardware systemsconsumer electronics

Featured

Slideshows

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

New Zealanders kick-started EDGE 2018 with a bout of Super Rugby before a dedicated New Zealand session, in front of more than 50 partners, vendors and distributors on Hamilton Island.​

EDGE 2018: Kiwis kick back with Super Rugby before NZ session
EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018 kicked off with a dedicated New Zealand track, highlighting the key customer priorities across the local market, in association with Dell EMC. Delivered through EDGE Research - leveraging Kiwi data through Tech Research Asia - more than 50 partners, vendors and distributors combined during an interactive session to assess the changing spending patterns of the end-user and the subsequent impact to the channel.

EDGE 2018: Kiwis assess key customer priorities through NZ research
Show Comments