Nokia sees Q1 revs drop despite record-high Lumia sales

April 19th, 2013, 00:02 Posted By: wraggster

5.6 million Lumia handsets shifted in first quarter.
A record-breaking Q1 performance from Nokia’s Lumia handsets was not enough to stop the Finnish manufacturer from experiencing a 25 per cent drop in net sales in the year’s first quarter.
Down 25 per cent to €2.9 billion in Q1 sequentially, Nokia’s net sales represented a year-on-year dip of 32 per cent, while overall smartphone sales dropped five per cent to €1.2 billion on the previous quarter and 32 per cent year-on-year.
Sales of feature phones also dipped to €1.6 billion, falling 36 per cent year-on-year and 31 per cent on Q4 2012.
However, Q1 wasn’t all negative for Nokia, having seen its Lumia smartphones ship an all-time high of 5.6 million units during the three-month period. This represents a 4.4 million rise on the previous quarter.
Nokia shifted a total of 11.1 million smartphones in Q1, of which just over 50 per cent were Lumia devices.
Nokia’s entire business saw sales hit a total of €5.85 billion in Q1, marking a 27 per cent downturn on Q4 2012 and a 20 per cent dip year-on-year. This overall loss of €257 million does, however, represent a distinct improvement on its Q1 2012 loss of €1.47 billion.
Nokia CEO Stephen Elop commented: “At the highest level, we are pleased that Nokia Group achieved underlying profitability for the third quarter in a row. While operating in a highly competitive environment, Nokia is executing our strategy with urgency and managing our costs very well.
“We have areas where we are making progress, and areas where we are further increasing the focus. For example, people are responding positively to the Lumia portfolio, and our volumes are increasing quarter on quarter. Nokia Siemens Networks delivered another strong quarter and contributed to an overall improvement in Nokia Group's cash position. On the other hand, our mobile phones business faces a difficult competitive environment, and we are taking tactical actions and bringing new innovation to market to address our challenges.”

http://www.mobile-ent.biz/news/read/...a-sales/021133

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