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Nokia will invest in new materials and new technologies for upcoming Windows Phones, targeting higher-priced handsets as well as more affordable models to broaden Lumia’s appeal. “It takes a tremendous amount of work to break through as the third ecosystem” CEO Stephen Elop said on Nokia’s financial results call today, after announcing a $1bn operating loss for Q2 2012, but was confident that Microsoft’s announcement of Windows Phone 8 – and limited upgrade potential for existing Lumia devices – would not necessarily ruin Nokia’s Q3.

Microsoft announced Windows Phone 8 last month, outlining the new smartphone OS’ shared kernel with Windows 8, but also confirming that any current Window Phone 7.x device would not get an upgrade. Instead, they’ll have to make do with Windows Phone 7.8, a halfway-house of UI tweaks that makes the current platform look like WP8 but lacks the underlying technologies.

However, Nokia believes that will not necessarily be a drawback. “What we’re very focused on communicating right now is that existing owners – and people who buy devices tomorrow – will be very clear what they’re getting from Windows Phone 8″ Elop said in response to questions as to users might be confused. In fact, the company has seen activation of Lumia handsets as being ”stable to up” in the period after Windows Phone 8 was announced.

“We have to carefully communicate, the updates and upgrades we are providing for the existing devices are anticipated not just up to Windows Phone 8 but after Windows Phone 8 ships” Elop conceded. “We will continue to sell existing Lumia devices beyond Windows Phone 8, in some cases for quite a while. We’re working very closely with developers … to ensure application development flow continues across the platforms.”

Nokia’s estimates for Q3 are roughly in line with those of Q2, though plus-or-minus 4-percent. That relatively broad range, Elop explained, is because of the degree of uncertainty around how Windows Phone 7 will be impacted by the new incoming version.

Nokia: We’re committed to new materials, new tech, and supporting existing owners is written by Chris Davies & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

Microsoft continues to pay Nokia more to use Windows Phone than the struggling Finnish firm pays in software royalty fees, its been confirmed, though Nokia still predicts similar struggles in the next quarter. As in previous quarters, Nokia is paid €250m ($307m) each three month period by Microsoft in “platform support payments” and the Finns estimate that “the total amount of the platform support payments is expected to slightly exceed the total amount of the minimum software royalty commitments.”

“Our agreement with Microsoft includes platform support payments from Microsoft to us as well as software royalty payments from us to Microsoft. In the second quarter 2012, we received a quarterly platform support payment of USD 250 million (approximately EUR 196 million). Under the terms of the agreement governing the platform support payments, the amount of each quarterly platform support payment is USD 250 million. We have a competitive software royalty structure, which includes annual minimum software royalty commitments. Minimum software royalty commitments are paid quarterly. Over the life of the agreement, both the platform support payments and the minimum software royalty commitments are expected to measure in the billions of US dollars. The total amount of the platform support payments is expected to slightly exceed the total amount of the minimum software royalty commitments. In accordance with the contract terms, the platform support payments and annual minimum software royalty commitment payments continue for a corresponding period of time” Nokia

Nokia and Microsoft have always been coy on exactly how much is charged of each OEM to use Windows Phone devices, but the takeaway here is that right now it’s not costing Nokia anything to put the platform on its handsets. In fact, Microsoft is in effect subsidizing Nokia’s losses.

As for the immediate future, Windows Phone 8 won’t arrive soon enough to turn around Q3 2012. Nokia is predicting a similar batch of numbers to what it announced today, with Q3 expected to be roughly on a par with Q2′s performance give or take 4-percent.

What could make a difference is if Lumia Windows Phone sales continue to rise at the same pace. Nokia announced shipments of 2m handsets in Q1 2012, and 4m in Q2, so the platform is certainly going in the right direction; unfortunately for the company’s bottom line, that success was offset significantly by losses in all divisions – including NAVTEQ and other services – and the continued dwindling of interest in Symbian phones.

However, the fact that current Lumia handsets won’t get an upgrade to Windows Phone 8 may well scupper the rise in interest, if the mass market figures out that it’s buying into what amounts to a dead-end range. AT&T recently halved the price of the Lumia 900 to $49.99 on contract, though Nokia insists that doing so is standard market practice given where the device is in its lifespan.

Nokia: Microsoft pays us more than we pay them (but Q3 will still be dire) is written by Chris Davies & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

Nokia has announced its Q2 2012 financial results, with the beleaguered company reporting shipments of 4m Lumia Windows Phones and net sales up slightly on the previous quarter. Net sales hit €7.5bn ($9.22bn), up €0.1bn from Q1, while mobile phones volumes overall rose to 73m units. However, operating loss hit €826m ($1bn).

2012 has not been a good year for Nokia. The Finnish company saw its long-standing position at the top of the mobile ladder stolen out from under it by Samsung, with adoption of Lumia Windows Phones sluggish at the top end, and Nokia’s entry-level range under heavy attack from cheap Android devices in developing markets.

Windows Phone 8 represents another opportunity for Nokia to recover, with the next-gen version of the platform already shaping up to be considerably improved as well as tightening integration between the smartphone OS and Windows 8 on the desktop thanks to a shared kernel. However, that advance comes at a cost: existing Windows Phone 7 devices, including the entirety of Nokia’s existing line-up, won’t get an upgrade to Windows Phone 8, instead getting a partial tweak with the new UI but none of the more impressive underlying features.

Meanwhile, Nokia has also suffered by not having its own piece in the tablet ecosystem, the company holding off until – as CEO Stephen Elop has previously said – it can bring something new to the marketplace. That could involve Windows 8 or its ARM-centric sibling Windows RT, though like Windows Phone 8 they’re not expected until Q4 this year.

Stephen Elop statement on Q2:

“Nokia is taking action to manage through this transition period. While Q2 was a difficult quarter, Nokia employees are demonstrating their determination to strengthen our competitiveness, improve our operating model and carefully manage our financial resources.

We shipped four million Lumia Smartphones in Q2, and we plan to provide updates to current Lumia products over time, well beyond the launch of Windows Phone 8. We believe the Windows Phone 8 launch will be an important catalyst for Lumia. During the quarter, we demonstrated stability in our feature phone business, and enhanced our competitiveness with the introduction of our first full touch Asha devices. In Location & Commerce, our business with auto-industry customers continued to grow, and we made good progress establishing our location-based platform with businesses like Yahoo!, Flickr, and Bing. We continued to strengthen our patent portfolio and filed more patents in the first half of 2012 than any previous six month period since 2007. And, we are encouraged that Nokia Siemens Networks returned to underlying operating profitability through strong execution of its focused strategy.

We are executing with urgency on our restructuring program. We are disposing of non-core assets like Vertu. We are taking the necessary steps to restructure the operations of the company, which included the announcement of a new program on June 14. Faster than anticipated, we have already negotiated the closure of the Ulm, Germany R&D site, and the negotiations about the planned closure of our factory in Salo, Finland are proceeding in a collaborative spirit.

We held our net cash resources at a steady level after adjusting for the annual dividend payment to our shareholders. While Q3 will remain difficult, it is a critical priority to return our Devices & Services business to positive operating cash flow as quickly as possible”

Nokia Q2 2012: 4m Lumia shipped but $1bn operating loss is written by Chris Davies & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

HTC has opened its Elevate VIP community of device owners up to Windows Phone users, inviting those with HTC Windows Phones to apply for membership to the advocacy and development program. Launched earlier this year, HTC Elevate has until now worked primarily with Android owners – members got prior access to previews of Ice Cream Sandwich updates back in February – but HTC is now accepting applications from those using the company’s other mobile platform of choice.

Ninety users will be accepted, according to HTC, still a minority in comparison to Android users in the program, which are believed to number somewhere between 500 and 1,000. HTC uses its audience to test new functionality and survey potential new features.

“We’re offering an opportunity for you to collaborate directly with the team at HTC to help with innovation, feedback, advocacy, marketing and quality” the company says of the Elevate program. “We consider our community members an important part of the creative team, so your opinions and feedback will help shape the future of HTC products and services.”

The new Windows Phone admissions are likely to be timed with HTC’s Windows Phone 8 development, though the company was conspicuous by its absence from the initial line-up of OEMs expected to release devices running the new OS. Membership is by application, and not everybody who applies will be accepted into the program.

HTC Elevate VIP outreach opens for Windows Phone owners is written by Chris Davies & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

Microsoft may have told us a lot about Windows Phone 8 in June, but it left out much of what the Office component’s update would entail. Thankfully, Partner Group program lead John Jendrezak has voluntered to let us peek under the hood, including our first real glimpse of the new Office Hub. The app’s connection to Office 2013 is more than the skin deep looks you see here: Office documents will sync more seamlessly from desktop to phone, and it’s implied that the reading position sync from the desktop version will extend to the mobile realm as well. Many mysteries still remain as to what’s exactly different in the more pocketable version of Office. There’s more about the new work suite’s communion with the cloud at the source link, however, so dig in if an offline Office feels like a prison.

Filed under: Cellphones

Microsoft gives a tease of Office for Windows Phone 8, talks up Office 2013 integration originally appeared on Engadget on Tue, 17 Jul 2012 16:07:00 EDT. Please see our terms for use of feeds.

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