A few months ago, we wouldn’t have believed it either. But in the Q2 2013 earnings documents released today by Nokia, it has become clear that the one thing the storied manufacturer has going for it now is Lumia sales.
Nokia has been grinding away for the last several quarters, increasing their Lumia sales sequentially. By the end of their second quarter, Nokia had sold the highest number of Windows Phones to date: 7.4 million Lumia handsets. That’s a jump of 32% from the 5.6 million they moved in Q1 2013, though the market was betting on the sales to reach 8 million. In his obligatory note attached to the earnings, CEO Stephen Elop specifically called out the Lumia 520, which he says has, “enjoyed a strong start,” in several important markets. Unfortunately, Nokia is still struggling to find a market in the United States, with sales up to a paltry 500,000 units this quarter.
Yet while Nokia celebrates the rise of their Lumia portfolio, they still find themselves struggling to sell the rest of their products. Typically a bright spot in their quarterly earnings, sales of the company’s Asha handsets only accounted for 4.3 million units (a noteworthy slip from the 5 million sold last quarter). Meanwhile, featurephone sales decreased by 4% quarter-on-quarter. All of this added up to overall sales slipping by 3% between quarters.
Obviously when sales struggle, the company struggles with them. However, it should be pointed out that Nokia is steadily narrowing its losses, this quarter only posting a EUR 115 million loss (compared to 150 million the previous quarter, and a staggering 824 million the same time last year).
For the most part, Nokia is close to finally turning a real profit for the first time in years, and the shot in the arm the Lumia 925 and Lumia 1020 may provide could be vital to success next quarter.
Tags: Financial Results, Global, Hardware, Nokia