Nokia sales disappoint as Microsoft readies phone group takeover

Windows Phone sales dropped sequentially despite the holiday shopping season

Nokia's improving Lumia shipments came to a halt during the fourth quarter, bad news for Microsoft, which will soon take over the phone unit.

The Finnish company reported fourth-quarter sales of €3.48 billion (US$4.75 billion), down 21 percent year-on-year, and a net loss of €615 million, down from €3.1 billion a year earlier.(

Having won shareholder approval of the pending sale of its Devices & Services business to Microsoft last November, Nokia isn't including that part of the company in its total numbers, instead reporting that business as discontinued operations in its fourth quarter.

Revenue for the Devices & Services business was €2.6 billion, down 29 percent year on year.

For the first time, the company also didn't break out how many phones it sold, including its range of Windows Phone-based Lumia products. It did say that it shipped fewer phones overall, year-on-year, but that smartphone sales increased. From the third to the fourth quarter, however, the reverse was true: it sold fewer smartphones, but more phones overall.

The fourth quarter is traditionally a strong one for phone vendors, because of the holiday shopping season, so the smartphone sales drop is disappointing and bad news for Nokia and Microsoft, according to Francisco Jeronimo, research director for European mobile devices at IDC. Before the fourth quarter, Lumia volumes had continually increased last year.

The deal with Microsoft is expected to close before the end of March. Once Microsoft has taken control, it has many decisions to make, including brand alignment, how the devices business should be structured within Microsoft, and the level of autonomy it should have, Geoff Blaber, CCS Insight's vice president of research for the Americas, previously said.

Now it also has to add a way to increase smartphone shipments, if it wants Windows Phone to survive.

Send news tips and comments to mikael_ricknas@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesconsumer electronicsMicrosoftsmartphoneshardware systemsNokiatabletsfinancial resultsMergers and acquisitions

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?