Nokia today announced its latest financial results. Net sales hit €3.4 billion (about CA$5.17 billion), a 21% drop over the same quarter a year ago but an 18% improvement over Q3 2013. It was the last time that Nokia report results that include sales from its phone division. With the Microsoft acquisition of its Devices and Services group set to close this quarter, the company is now reporting the financials of this division as discontinued operations.
According to Risto Siilasmaa, Nokia Chairman and interim CEO:
“The fourth quarter of 2013 was a watershed moment in Nokia’s history. Having received overwhelmingly strong support from our shareholders at our extraordinary general meeting in November for the sale of our phones business to Microsoft, we are diligently working towards defining Nokia’s future direction. I am pleased with the progress we have made thus far in our strategy evaluation and excited by the opportunities ahead for each of our three continuing businesses: NSN, HERE and Advanced Technologies.”
Nokia’s financial results do not provide specific Lumia sales numbers but the company did later confirm that it sold 8.2 million Lumias in Q4. While a significant increase over the same quarter a year ago, it is also a drop over the record 8.8 million units sold in Q3 2013. Revenues for the division hit €2.6 billion (about CA$3.95 billion), a drop of 29% over the same quarter a year ago and 5% over the previous quarter.
Sales more than doubled over 2012 to about 30 million Lumia smartphones sold over the 2013 year. These would be great numbers if it was not for the Q4 drop raising concerns that sales may have plateaued.
It’s clear that Microsoft is not buying a silver bullet solution to establishing Windows Phone as a credible alternative to Android and iOS. It certainly explains why Microsoft is actively wooing manufacturers, including Sony Mobile, back to the Windows Phone family with offers of reduced or even eliminated license costs and marketing and R&D support in the form of various incentives.