TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentral TechCentral
    NEWSLETTER
    • News

      Where to next for Dimension Data

      5 July 2022

      Zapper is said to seek fundraising at huge valuation

      5 July 2022

      Stage-5 load shedding to continue until Thursday

      5 July 2022

      Big step forward for Cell C as debt deal approved

      5 July 2022

      Eskom unions accept 7% wage offer

      5 July 2022
    • World

      Bitcoin hints at a bottom – but it may be different this time

      5 July 2022

      China, US war of words erupts over lunar missions

      5 July 2022

      Tether fails to calm jittery nerves

      4 July 2022

      EU to impose wide-ranging new rules on the crypto industry

      3 July 2022

      Crypto hedge fund Three Arrows files for bankruptcy

      3 July 2022
    • In-depth

      The bonfire of the NFTs

      5 July 2022

      The NFT party is over

      30 June 2022

      The great crypto crash: the fallout, and what happens next

      22 June 2022

      Goodbye, Internet Explorer – you really won’t be missed

      19 June 2022

      Oracle’s database dominance threatened by rise of cloud-first rivals

      13 June 2022
    • Podcasts

      How your organisation can triage its information security risk

      22 June 2022

      Everything PC S01E06 – ‘Apple Silicon’

      15 June 2022

      The youth might just save us

      15 June 2022

      Everything PC S01E05 – ‘Nvidia: The Green Goblin’

      8 June 2022

      Everything PC S01E04 – ‘The story of Intel – part 2’

      1 June 2022
    • Opinion

      South Africa can no longer rely on Eskom alone

      4 July 2022

      Has South Africa’s advertising industry lost its way?

      21 June 2022

      Rob Lith: What Icasa’s spectrum auction means for SA companies

      13 June 2022

      A proposed solution to crypto’s stablecoin problem

      19 May 2022

      From spectrum to roads, why fixing SA’s problems is an uphill battle

      19 April 2022
    • Company Hubs
      • 1-grid
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»Top»Nokia shifts Lumias, but misses financial targets

    Nokia shifts Lumias, but misses financial targets

    Top By Editor11 April 2012
    Facebook Twitter LinkedIn WhatsApp Telegram Email
    Nokia CEO Stephen Elop

    Nokia warned investors on Wednesday that its first quarter performance was lower than expected, ahead of its earnings report next Thursday. The company also doesn’t expect things to shape up for the second quarter, which means this will be a difficult year for the company overall.

    But on the bright side, Nokia revealed it sold 2m Lumia devices in the quarter at an average price of €220. The company says it has seen sequential growth in Lumia activations since the devices launched in November, making it clear the new smartphone line is off to a strong start.

    Nokia said that the operating margin for its Devices and Services division was negative 3% for the quarter, when it previously expect to break even. For the second quarter, the company expects performance to be “similar or below” what it saw this quarter.

    Not surprisingly, Nokia cited “competitive sales dynamics” that hurt its feature phone and smartphone business. The company said that competition was especially tough in India, the Middle East and China

    “Our disappointing Devices & Services first quarter 2012 financial results and outlook for the second quarter 2012 illustrates that our Devices & Services business continues to be in the midst of transition,” Stephen Elop, president and CEO of Nokia, said in a statement. “Within our Smart Devices business unit, we have established early momentum with Lumia, and we are increasing our investments in Lumia to achieve market success. Our operator and distributor partners are providing solid support for Windows Phone as a third ecosystem, as evidenced most recently by the launch of the Lumia 900 by AT&T in the US.”

    The company estimates that net sales in its Devices and Services division were €4,2bn for the quarter. Feature phone sales were estimated at €2,3bn (or 71m units sold), while smartphone sales were €1,7bn (or 12m units sold). Nokia expects its Devices and Services gross margin to be around 25%. The company says it will have around €4,9bn  in net cash and other liquid assets by the end of the quarter.

    On a call with investors on Wednesday, Elop said the rate of  low-end Android devices entering the market, along with their dirt-cheap prices, were a big problem for Nokia. He also said competitors had “particular products at particular price points” where Nokia isn’t even a competitor, like high-end touchscreen feature phones.  — VentureBeat

    Nokia Stephen Elop
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticlePartying like it’s 1999
    Next Article Policy overhaul ‘long overdue’

    Related Posts

    Bitcoin hints at a bottom – but it may be different this time

    5 July 2022

    China, US war of words erupts over lunar missions

    5 July 2022

    Tether fails to calm jittery nerves

    4 July 2022
    Add A Comment

    Comments are closed.

    Promoted

    Hot Ink certifies and diversifies to maintain competitive printing edge

    5 July 2022

    Increased flexibility with Dell Precision Mobile Workstations

    5 July 2022

    The 5 secrets of customer experience in the cloud era

    5 July 2022
    Opinion

    South Africa can no longer rely on Eskom alone

    4 July 2022

    Has South Africa’s advertising industry lost its way?

    21 June 2022

    Rob Lith: What Icasa’s spectrum auction means for SA companies

    13 June 2022

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2022 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.