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Nokia patches things up with first profitable quarter in nearly two years

Today, Nokia has released its long awaited Q4 2012 and full year 2012 financial reports to the public, and there are bound to be more than a few smiles about it in Finland. Two weeks ago we learned of Nokia’s smartphone sales numbers for the quarter along with a tease of what’s to come, and this afternoon the company has delivered.

The biggest highlight of the report is that Nokia was able to finally reach a net operating profit of €439 million  (about $587 million USD). It’s the first time Nokia has reported a profit in six quarters, which makes it a landmark sign of progress.

The main focus from the media is of course on Nokia’s Devices and Services division, and its mostly good news. During the holiday quarter, Nokia sold 9.3 million Asha devices, 4.4 million Lumia devices, and 2.2 million Symbian devices. Operating profit was a meager €52 million, but it is a big improvement over Q3′s operating loss of €263 million. Unfortunately Nokia did not divulge specific North American sales numbers of its smartphones, but we do know that sales for the region reached a revenue of €196 million — which is a mind-boggling 444% increase over the prior quarter.

Beyond just device sales, the Nokia Siemens Network division of the company was the most to thank for the quarterly turnaround as its operating profit leaped 14.4% during the quarter to reach its highest profitability level ever. Another surprise, but not the good kind, was the under-performance of the Location & Commerce division. The home of the new HERE brand unfortunately took a tumble in the last quarter of 2012, posting an operating loss of €56 million despite increasing net sales.

Overall, Nokia had a more-good-than-bad showing today with its financials. With exciting plans in the works for next month’s Mobile World Congress, the industry should continue observing Nokia with an optimistic gaze.

Source: Nokia


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Saad Hashmi

Founder of Windows Phone Daily. Currently pursuing a Bachelor's degree in Marketing and Information Systems. While procrastinating on that goal I write, play games a little too often, and watch exorbitant amounts of mediocre half-hour comedies because I lack the patience to watch hour-long dramas that are probably better. Follow me on Twitter: @Saad073