Nokia Q1 2012 Report

| April 19, 2012 | 528 Replies


I’ve got a meeting to go to right now, so I’ll just share this very quickly:

Key points:


– Q1 2012 net sales of EUR 7.4 billion (Q1 2011: EUR 10.4 billion)
– Non-IFRS EPS of EUR -0.08 and reported EPS of EUR -0.25
– Losses incurred due to greater than expected competitive challenges and seasonality; reported
losses also primarily driven by charges related to restructuring activities
– Implementation of smartphone strategy proceeding:
o Expansion of Lumia portfolio to cover higher and lower price points (Lumia 900 and Lumia
610 announced in Q1)
o Expansion of geographic coverage to 45 countries currently (31 new countries in Q1)
o Encouraging launch of Lumia 900 with AT&T in US in April
– Renewing feature phone portfolio with 7 new Asha products ramping up
– Taking action to drive improvements in the trajectory of Lumia sales and to support feature
phone sales
– Plans to accelerate and substantially deepen Devices & Services cost savings, consistent with
strategic focus. Nokia will share further details as quickly as possible.
– Balance sheet remains strong with EUR 9.8 billion of gross cash at end-Q1; EUR 4.9 billion of net
cash at end-Q1
– Estimates that current annual IPR royalty income run-rate is approximately EUR 0.5 billion

Big old F on this report, eh?


Category: Nokia

About the Author ()

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  • BellGo

    Did anyone actually think that this wouldn’t happen? That Lumias would sell 20m or close by now? Because that is what is needed for Nokia to return to the game.

    • noki

      I thought it could be selling 5 million devices per quarter by now..

      The Lumia numbers are really bad, I think this is a result of the overall sales plunge caused in great part by the burning memo. Former Nokia users are not willing to have anything to do with a Declared dead product or anything that might have something to do with it. Including the Lumias… This makes sense if one correlates it with the markets were the Lumia as been struggling the most…former great Nokia markets. (Scandinavia is a special case)

      • jiipee

        In addition they consentrated their efforts to market where their brand value is the lowest and left their smartphone low end deteriotate. One year+ later they start to ship new replacing products to stores – and still a lot of markets are not served at all.

        • jiipee

          Was it China telecom with whom Nokia has Lumia deal with? And China Mobile, who were part of Meego program?

          Are there any Chinese or people knowing the Chinese market present? Do you know if the following Wikipedia excerpt is accurate?

          “China Mobile has dominated Chinese mobile services since its inception. As of 2010 China Mobile controls the vast majority of its domestic mobile services market with a 70% market share. China Unicom and China Telecom have 20% and 10% shares, respectively”

          • noki

            yes those numbers are accurate….what can we say elop is a genius

          • Carbontubby

            There are three different networks in China:
            China Mobile – GSM and TD-SCDMA
            China Unicom – GSM and UMTS/HSDPA
            China Telecom – CDMA and LTE

            The numbers posted are correct and China Mobile is the world’s largest mobile network operator by number of subscribers.

            China Mobile switched to the local manufacturers who could make phones to order. Its 3G TD-SCDMA network isn’t popular and there are few phones on it, including an N8 variant, but it’s a China-only network standard. Most users make do with GPRS/EDGE connectivity even with the latest iPhones and Android phones. China Mobile is having a limited LTE rollout to hopefully leapfrog past its limited 3G network.

            China Telecom runs a CDMA network so the recent Lumia release in China involves CDMA phones.

            • Jiipee

              Thanks, that gives some more perspective to the figures

        • Doffen

          The momentum map says nothing about the most important momentum indicator – number of sales/ market share.

      • inept

        The numbers really are bad. Horrendous. Nokia sold only 600K phones in the USA in total for Q1. That includes Lumias, Symbian devices, feature phones and dumbphones. Around 600K phones of any sort.

        What are the odds that most were cheap S40 devices that come with pre-paid SIMs or whatnot? High, I’d wager. What does that mean for Nokia’s better-than-expected T-Mobile sales numbers for the Limua 710?

        That expectations were probably zero units and they beat them. Clearly T-Mobile wasn’t cutting Limua 710 prices the week after launch because sales were amazing. Sales were actually terrible.

  • S.A

    Once the trust is lost, it’s hard to get it back.

    • SLAYER


    • Mark

      Exactly. Destroyed by the N97 and N8.

      • Tim.L

        Pretty much.

        N97 to this day is the start of it all. What a piece of shite that alianted muh of the West from Nokia. Leavin just the cheapy symbians to 3rd world.

      • travis

        The N8 sold more than 10 million already despite all these negative press about Symbian. It’s more of Elop’s fault rather than the platform itself.

        • Mark

          “The N8 sold more than 10 million already”

          Proof please.

      • Stern

        Destroyed by Stephen Elop.

  • larryg968

    I think the most important thing people are missing is blackberry. RIM sold 11.1 million devices in Q1 2012. Nokia sold 12m.

    Does anyone believe that Blackberry is/ was more competitive than Symbian?

    Basically, Nokia sold less Symbian devices than Blackberry. Nokia’s sales have fallen far faster than RIM considering the market share and actual sales figure of Nokia and RIM.

    Say whatever u like but that falls squaring on Elop’s feet for EOLing Symbian.

    • Janne

      No, actually Nokia sold to the tune of 80 million devices on Q1.

      • larryg968

        No, im referring to smartphone. RIM only sells smartphones. Nokia sold 71mil feature phones and 12mil smartphones.

        Check it for yourself.

        • john

          RIM would have held on due to corp email and teenagers using IM. Not really due to the handsets as such but more the apps/services offered only to these handsets.

        • Janne

          larryg968: Well, you said “devices”. Not smartphones. Letting it sound like Nokia only makes 1 million more devices than BlackBerry/RIM.

          As for Nokia’s mobile phones, I’d say many things like Asha 303 actually are smartphones in every way compared to what BlackBerry labels as smartphone these days.

  • JD!

    Elop must be partying hard with MS folks!

    • Doffen

      Waiting for his big bonus check from Balmer me thinks…

      • dss

        Its probably a preferred stock option kind of deal.

  • Fail

    My question to every one……..IS NOKIA UR FATHER’S COMPANY????? Loss or gain it’s not our………..+apple is shit

    • manu

      ya exactly.if nokia stop making phones we will buy another makers device.
      And whatever device we buy eventually we become their fanboys.i see many of my friends who had used nokia for years,suddenly bought one samsung device and start talking shit about nokia.

    • Ebon & Unicorn N9s

      I have an emotional stake in Nokia just like the authors and many of the regulars here.. Many of us here are hurt by the way Nokia has being run for the last 14months and think the current Nokia management have their best interests somewhere else..

      • rxc13

        Last 14 months??? Man you can’t be any more wrong. I am a Nokia fan and I can admit that the N97 was a POS. Their problems go way further back.

        • noki

          I give you the last 14 months and a bit more than that

          • Ebon & Unicorn N9s

            The problem with that graph is that since the figures are released only once a quarter , the line graph isn’t accurate to show how the values change during a quarter. In my opinion, a bar chart makes more sense in these scenarios.

          • Janne

            Here is the graph that REALLY shows what was going on with Nokia’s previous primary smartphone OS:


            Nokia sold really poorly Symbian^3 devices. The trajectory overall was down. What was selling were the cheapo S60v5 (ironically the “brothers” of N97) until Android came down in price and Owned.

            As for mismanaging Symbian transition? Sure, Elop caused that and fastened the downfall of Symbian (that was already happening) somewhat.

            • Janne

              In the Wikipedia graph I quoted, look at especially Q4/2010. The trajectory of Symbian and that of Android.

              The danger was right there – and Nokia reacted.

              • troll

                I shall ignore you for your logic is sound.

  • Srikanth

    Even though employees and all chief workers at Nokia knew what is going on and what people want, why all these happened?

    • dr_zorg

      Because the Nokia board are highly corrupt and have no principles.

  • osg

    similar here… On the other hand, smartphone business is great boom today. Nearly every manufacturer is increasing their sales except of Nokia. Former emperor is failing, newcomers rule the world. It’s better to be on the stronger side…

    Hardly anyone can believe that Nokia’s strategy is good. They pissed developers, existing customers and community. Elop’s statements are repeatedly explained and reiterated by analysts, bloggers and toilet cleaners. So, we have situation. Nokia lost direction and faith of the public.

    What I really dislike, that for sake of wp strategy they are not selling and promoting everything possible to boost sales. Ads for Lumia is everywhere including toilets on petrol stations. Belle devices, keypad devices still on market, but with s40 or s60v3, no ads, no future.

    No faith in Nokia, that’s the reason of sudden negativity from former customers.

  • Johnny Tremaine

    The consensus seems to be, according to outlets like the Wall Street Journal, Financial Times, etc. is, that Nokia only has enough cash on hand to fund operations for the next six or seven months, before they need to start selling off major assets in order to keep going.

    And I mean *major* assets, including:
    -all of Navteq
    -their whole feature phone business
    -their wireless patents
    -their whole stake in Nokia Siemens Networks.

    • dss

      The smartphone biz .. that one is going to MS, I think.

    • dr_zorg

      This was the master plan all along. People (including myself) have been saying this for the past year and a half. Nokia’s assets are the envy of all their rivals. Nokia became too strong for American business to sit idle -and American business does NOT believe in fair competition. They talk of “free market” but they never practice what they preach. Just like their “democracy” is a lie for dimwits, so is their “free market”. US itself is governed by monopolistic corporations and conglomerates. The LEAST thing they want is to compete fairly. This is why Nokia had to be destroyed.

      • dr_zorg

        “no plan B” means: there will be no mercy, Nokia will be dismantled.

      • Johnny Tremaine

        Well, let’s not go off the deep end….

        Don’t forget, Nokia is, likewise, a global conglomerate, although a currently failing one.

        Most conglomerates aren’t ‘American’ per se; they don’t claim national loyalties, as they’re globally focused.

        Look at Unilever, Duetche Telecom, Siemens, Airbus, Volkswagon, Samsung, Sony and so forth.

        Really, need I go on, and can we put an end to this silly anti-Americanism now?

        • dr_zorg

          “silly anti-Americanism”

          I’m quite sure many people called out the “silly anti-Germanism” in the 1940’s.

          The fact of the matter is that American business has destroyed another (among many) European company.

          I can see that you are blind to what’s happening around you and/or American patriotism is clouding your judgement.

          This doesn’t make the fact of Nokia (a European company) being destroyed by Microsoft (an American company) untrue.

          And this is just one example among many others.

        • dr_zorg

          Unilever is not at the head of future technologies.

          Deutsche Telecom is only a small player in the U.S. market and is not at the head of future technologies.

          Volkswagen, Airbus, Siemens, Samsung, Sony and so forth are manufacturers of “hardware”.

          The issue here is this (i’ll write this in bold letters for you to see it more clearly):


          That is what’s at stake. And the stake is HUGE.

          All Airbuses and VWagen are dwarfed in comparison.

          • dr_zorg

            And to clarify for the blind:

            Without communications, hardware is meaningless.

            Jet fighters (for example the F-16) sold to other nations can be easily made absolutely inoperable by a simple piece of code transmitted over the air from Pentagon. (it’s a fact, look it up)

            This is why Airbuses and Samsungs don’t matter in the slightest. They can make their buck, but they do not control the hardware they manufacture.

            Control of communications systems is the key to controlling the globe.

  • Saul

    LOL this thread cracks me up…
    Listen to all the pherds, Moarrrr!

  • SirraH77

    All I can say is that was really … to read through Q1 report ;(

    The worst thing in it was that Nokia is expecting Q2 to be as bad or even worse! I really hope it won’t be.

  • npo4

    This could be worse, if they only lost €3 billion in this transition phase. They’re still making a fair amount of money given that Symbian sales have fallen and WP hasn’t taken up the slack yet, especially when you consider that the Lumia 900 sales aren’t included yet.

    • Heron

      In fact, credit to Elop? That will be madness to those wanting to see Elop fail.

      L610 and L900 this quarter and next will set the tone for the main thrust of this strategy.

      • dr_zorg

        That’s right! Three cheers to the captain who steered the ship into the iceberg!

        • Beelzebozo

          We’re not sinking. Can’t you see the lights are still on? And the band is playing. How can the lights be still on and the band playing if we are sinking? Silly you. Let’s just get inside and enjoy the music. It’s cold out here. Waiter, bring us some brandy.



  • nokia


    i know it is just because of not developing MEEGO

    n9 should have one successor

  • wazapp

    the solution for nokia this situation is simple, but nokia just do not want to do that!

    nokia deserves bankruptcy! nokia is carrying a candle for microsof!

  • manu

    nokia can bounce back if they launch a device with specs,4.7 inch hd screen,quadcore cpu,1gb ram,12mp camera sensor from N8 all in a beautiful slim design,also by launching devices at various price point like htc did with one x, s,v.
    But this is nokia they might be planning for a device of this specs in 2016.

    • john

      Dont be silly this is Nokia after all…

      There will be at least 5 devices to hit all the markets :

      1. Amazing camera, with a 19:6 2.3″ screen, single core
      2. 64GB, dual core, but EDOF
      3. 4GB, keyboard, dual core, no camera
      4. 16GB, dual core, metallic go faster spoiler that sparks
      5. Great camera, advertised by a blind guy…….,OS modification so its unusable
      6.Great camera, dual core, keyboard, 64GB, barred from the app store

      ANy others that they might have missed ?

      • Carbontubby

        That would be the new Nokia A, B, C… X, Y and Z series 😉 Expected launch date: 2016.

        Why the heck can’t they just build a phone with all the top features inside? Screw focus groups, just make one monster smartphone as a halo device.

      • dr_zorg

        Haha, good joke there. Except that’s so true..

      • manu

        lol well said.a company should produce what consumers need ,thats what samsung is doing now.making different phone for taste of different consumers.
        Elop should have thought that anything with nokia name sells,he expected nokia wp to do same.but neither wp suceeded by the way it killed nokia also

    • Grendell

      I completely agree! So far they really haven’t made too many mistakes. They’ve only:
      1) Leaked the Burning Platform Memo thereby accelerating Symbian’s demise, Not allowing Meego to develop properly leaving them with..
      2) The Hail Mary Windows Phone Strategy, which is not only the only current option they left themselves with but is also such a step back in functionality that they have
      3) Alienated Repeat Customers by leaving them nothing to migrate to from their old Nokia phones. Unsatisfied customers buy something else. They have also not released a comment on whether the current crop of Lumias will be upgraded to the next OS (hardware specs suggest a NO)potentially
      4) Alienating their New Windows Customers as well. Unsatisfied customers leave, as is clearly evident now. That and with their killing off Qt, they’ve also managed to
      5) Alienate Developers. Still, Hey. It’s Microsoft AND Nokia! What could they possibly worry about? Maybe a manufactured story about
      6) Acidic Sales Support? Which doesn’t really explain how they’re currently doing in Europe, right? I’m sure its more statistically probable that the low sales can be attributed probably to the weather. Oh, and to address this “current problem” they’re having on the Financial Statement, they propose to flood the market with
      7) even more WP units that may not be able to migrate to the next OS upgrade.

      Only an idiot repeats the same experiment expecting a different outcome.

      It’s been a fun ride.
      I grew up with Nokia..and I’m going to miss it.

      • dr_zorg

        “I grew up with Nokia..and I’m going to miss it.”

        That’s quite what I feel too.

        I liked their products (still do, apart from the Lumia) and I will miss them. The major reason for me being so emotional about Nokia is because I absolutely love the OS, features, design and quality of their phones (NOT the Lumia range).

        And I just hope that these phones I have collected (some 70-odd at last count) will remain usable for some years to come.

        • Ebon & Unicorn N9s

          Same here… Loved all my Nokia since the 3310 in 2002..

          Will keep on buying the Nokia OSes based phones(808 is on my list now) till I can..

  • JD!

    What do you say about this?

    *facepalm* :/

    • Ebon & Unicorn N9s

      Really Sad.. But not surprised to read this based on what has happened during the past year..

    • Oleg Derevenetz

      Henry Blodget still states that Elopocalypse was “a ballsy and necessary move by Elop and Nokia” while admitting that Nokia might go bankrupt in a couple of months because of this? LOL. Indeed, some people have only mouth and no trace of the mind.

      • dr_zorg

        They have a mind, but they can’t go and officially say that. That would invalidate their previous (paid or not) “estimate” where they say it’s a “needed move” and nobody wants to admit they were wrong. Part of the policy is to let the reader think for themselves 🙂

    • Mark

      I’d say he’s right. It might fail but Symbian and Maemo already had.

      • Saul

        So at what point does WP only in the top-end become a failure, so that WP only supporters decide to leave Nokia alone?

        Is April 2013 a reasonable enough length of time to demonstrate that Nokia’s on a trajectory to gaining a similar sort of market-share it had w/Symbian?
        (i mean we’re talking about two huge companies working together here, well one was)
        How good does it have to be at that point, to be saying it’s good enough for only WP to remain in the top-end?

  • I got a Lumia 800 and I’m happy with it. I still use Symbian as secondary OS/phone.
    The only thing that sucks is Zune
    And people who want Android because they think Android is good, without using it.

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