New Research Shows Nokia, Lumia & Asha Exceeding Expectations
NEW YORK, January 16, 2013
NEW YORK, January 16, 2013 /PRNewswire/ --
After selling around 86.3 million units in the fourth quarter of 2012, Nokia
estimates that Devices & Services net sales total at around EUR 3.9 billion.
This result exceeded expectations, helping the company regain momentum and the
interest of investors.
With preliminary Q4 figures released, Nokia Corporation (NYSE: NOK) [ Full
Research Report ] ^(1) Nokia estimates that Devices & Sales net sales in the
fourth quarter 2012 amount to EUR 3.9 billion, a count in excess of 86.3
million units. The Finland-based company comments that the Devices & Services
non-IFRS operating margin for the fourth quarter 2012 was between break even
and positive 2 percent, a great result compared to the previous outlook of
approximately negative 6 percent. The actual numbers for Nokia's fourth
quarter earnings are scheduled to be out on January 24.
For additional due diligence beyond the scope of this article, read our full
featured research report on Nokia Corporation including full detailed
breakdown, technical analysis, analyst ratings and price targets -
absolutely free of charge - available at:
The company stated multiple factors that affected its performance in the
fourth quarter of last year. Its mobile phone business units and its line of
Lumia smartphones caused soaring income for the company. Furthermore, cost
reductions under the company's restructuring program lowered operating
expenses. Stephen Elop, Nokia CEO, comments on the preliminary Q4
information, "We are pleased that Q4 2012 was a solid quarter where we
exceeded expectations… we sold a total of 14 million Asha smartphones and
Lumia smartphones while managing costs efficiently, and Nokia Siemens Networks
delivered another very good quarter."
The company's stunning results have given it a better position to challenge
smartphone giants like Samsung and Apple. Within the past few years, Nokia has
been lagging behind its competitors, falling from being a market leader to a
struggling has-been. However, its new line of smartphones has saved what
everyone thought was a hopeless cause. Achieving positive results for the
last quarter will help the company regain its footing, and analysts advise
that the Nokia has to consolidate on the advantages it has gained to grow
further from here.
Nokia is scheduled to release new smartphones like the Lumia 620 to continue
its momentum. Asha smartphones are also helping the company gain higher
income. In the fourth quarter of 2012, Nokia's line of Asha smartphones
exceeded the sales of Lumia smartphones. 9.3 million Asha units were sold,
compared to Lumia's 4.4 million units sold. Asha smartphones are popular in
India, Eastern Europe, Africa, and Latin America - price-sensitive markets
where affordable smartphones are more attractive.
Nokia's fourth quarter sales and performance reflects the company's ability to
go against the odds. If the company can keep its momentum, we may find it
performing at par with its competitors.
Nokia continues to develop affordable and feature-rich smartphones. Its third
and most affordable Windows 8 smartphone, the Nokia Lumia 620, will be
available starting this month. Developing more products that are inexpensive
but boast a full range of features will help the company become even stronger
in emerging markets.
But the company is not quick to assume that its results will automatically be
better from here. Nokia expects its non-IFRS Devices & Services operating
margin in the first quarter of 2013 to be around negative 2 percent, plus or
minus four percentage points. This is because of the competitive nature of the
industry and also because the first quarter is generally weaker in terms of
If the company takes the opportunity to develop more strategies to become more
competitive, then perhaps we'll see better days for Nokia in the future.
^(1) ^ The Full Research Report on Nokia Corporation - including full
detailed breakdown, analyst ratings and price targets - is available to
download free of charge at:
Consider National Traders Association
Tired of hearing about the latest, greatest trade opportunity... only to
realize that the ship has long sailed? You need a strong, informative
community in your arsenal. Join the group that has been consistently
identifying momentous situations as they develop -- long before they become
the next top news on major financial networks.
Contact: Contact: Demi Lapierre, Email: press@NationalTradersAssociation.org,
Press spacebar to pause and continue. Press esc to stop.