Apr 16
As it has been for the past several years, Google has reported a quarter in which they’re growing substantially. One of the more interesting things to have happened to the … Continue reading
Mar 04
HTC posted its February revenue tally (unaudited), and the number looks weak. The company had NT$7.22 billion in top line during the month, or $238.1 million USD. That’s down 36.5 percent from the same month a year ago, and down 25.29 percent from January, the sequentially preceding quarter. Read More
Feb 19
This afternoon Tesla shared the results of their financial fourth quarter for 2013, making clear their successes in selling their electric Model S vehicle worldwide. Tesla made clear that this … Continue reading
Jan 27
This afternoon Apple has shared their financial Q1 2014 results with the public, showing that, in the quarter leading up to the 30th anniversary of the Apple/Mac connection, the company … Continue reading
Jan 27
For the first time in two years, Apple has seen an increase in sales of its Mac computers. Not just an increase; a nearly 20 percent jump over a year ago. That’s… kind of nuts?
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Jan 23
Microsoft appears to be having a good quarter, as they’ve announced their financial second quarter (ending on December 31st, 2013), has resulted in record revenue. This revenue high-mark sits at … Continue reading
Jan 22
Nokia will report its fourth-quarter 2013 earnings tomorrow, a seminal moment for the company as the figures will represent the last full period in which it will own the hardware assets that it is selling to Microsoft.
It also matters as Nokia’s Lumia Windows Phone sales in the quarter will provide a report card of sorts for Microsoft. Given that Nokia makes and sells the vast majority of Windows Phone devices, its sales are proxy for the larger market for the phones. So if Nokia had a good quarter selling Lumias, Microsoft had a good quarter selling Windows Phones.
Microsoft will report its earnings later in the day.
Nokia sold 8.8 million Lumia devices in the third quarter of 2013. Given extant growth trends, we would expect Nokia to sell more phones in the fourth quarter. Add the simple fact that the period includes the holiday sales cycle, and we expect another bump. This means that Nokia should sell — easily — more than 10 million Lumia handsets in the quarter.
The stakes here are high for Nokia, given that it’s hard to win in this context, but very easy to lose. If it sells 11.5 million handsets instead of 11 I doubt people will laud it. But a weak number could cast a pall. The irony is that the asset in question is what the company is selling, so a negative result may not have as sharp an impact on its share price as it otherwise might.
Investors are expecting Nokia to earn around €0.08 ($0.11) in the quarter on revenue of €6.4 billion ($8.671 billion). It will be interesting to parse the company’s earnings as it intends to mark the assets it is selling as discontinued businesses. Nokia will dramatically change once it and Microsoft clear the final regulatory hurdles that sit between their consummation.
For the full-year period, Nokia is expected to earn €0.07 ($0.09) (on aggregate revenue of €23.7 billion ($32.11 billion) in revenue. That latter figure is a firm decline from its 2012 tally of €30.2 billion ($40.92 billion). And Nokia, selling off another chunk of revenue, is about to slim again.
So that’s that. Keep your eye on the Lumia number, as it matters for both firms.
Top Image Credit: Flickr
Oct 30
This afternoon Facebook’s financial Q3 report included word that the company was running up on expectations for growth, beating both 3-month and 6-month totals over the 2012 season at this time. This earnings report included word from CEO Mark Zuckerberg that “the next phase of our company” was ready to unfurl. Facebook’s report began with […]
Oct 30
Today we’ve seen Nokia’s financial Q3 results for 2013 and – though overall numbers leave something to be desired – it would appear that their “smart” phones strategy with Lumia and Asha is working. We’ve had a peek at Nokia’s results and cross-referenced with the IDC’s most recent numbers. We had a chat with the […]
Oct 29
Nokia Reports Net Sales Of €5.66B, €118M Profit, And 8.8M Lumias Sold In Q3
Posted in: Today's Chili
Nokia may be going through a hell of a transition period, but it released its fiscal Q3 2013 earnings this morning just like clockwork. The Finnish phone maker (for now, anyway) reported net sales of €5.66 billion (or $7.79 billion) in the quarter ending September, along with a surprise profit of €118 million ($162 million).
To put it mildly, those are big, big gains over Nokia’s past performance – the company posted a €115 million loss last quarter, and a whopping €564 million loss this time last year. Meanwhile, analysts expected the Finnish phone maker to report earnings of zero cents per share (which happens to be in line the figure Nokia put up last quarter) and €5.9 million in revenue in the days leading up to the release.
There’s been a considerable amount of movement on the smartphone front as well, as Nokia reported selling 8.8 million Lumia devices in Q3, up from the 7.4 million sold last quarter and the comparatively dismal 2.9 million back in the year-ago quarter. Former Nokia CEO Stephen Elop ascribed that growth to a slew of recent product releases and some savvy over-investment during its early Windows Phone days, but it probably doesn’t hurt that BlackBerry – the dark-horse candidate for the 3rd place spot in the smartphone race – has definitely seen better days.
But it won’t be long at all before the nature of these earnings releases changes on a fundamental level – after all, Microsoft announced back in September that it would acquire the entirety of Nokia’s Devices and Services business for $7.2 billion in a deal that’ll close in early 2014, so we’ll eventually see the remnants of Nokia focusing on its network and HERE Maps segments. That said, net sales for both divisions this past quarter were down sequentially (NSN, formerly Nokia Siemens Networks, was down slightly with €2.6 billion while HERE dipped to €0.2 billion), making for some generally flat year-over-year growth. That’s far from a bad thing in this case though – as The Verge’s Aaron Souppouris points out, a smaller Nokia that focused solely on networks and mapping would be even more profitable than the beast we see right now.
Meanwhile, that hardware shift wile eventually change the fortunes of both companies. The move is a big (if unsurprising) get for Microsoft, which has been cautiously shifting further into consumer hardware and could use a considerable boost for its Windows Phone platform. Of course, the announcement hasn’t exactly been bad for Nokia either – its stock price jumped shortly after the acquisition news broke and has largely stayed at those elevated levels through today.
That’s not to say that the New Nokia will never again churn out a phone though, as the company will regain to right to sell low-end feature phones in 2016.
This is a developing story, please refresh for updates.
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