Following last week's profits warning, Nokia has released its formal Q1 2012 Results, reporting a non-IFRS loss of EUR 260 million, on net sales of EUR 7.3 billion (down 29% YoY). Nokia's 'Devices and Services' division's loss was EUR 127 million, compared to a profit of EUR 292 million in Q4 2011). Total smartphone device sales were 11.9 million, compared with 24.2 million units in Q1 2011 (down 51% YoY) and 19.6 million units in Q4 2011 (down 39%, QoQ). Gross profit margins on smartphones in Q1 were 15.6% (down from 28.9% YoY). Quotes and comments below.
Nokia has announced planned changes at its factories in Komarom (Hungary), Reynosa (Mexico) and Salo (Finland), to "increase efficiency in smartphone production". These three factories will now focus on "smartphone product customization" and device assembly is expected to be transferred to Nokia factories in Asia, where the majority of component suppliers are based. Around 4000 employees will ultimately be lost.
Nokia has put up a super-glossy four minute reminder of its innovations over the last 25 years, from the first mobiles through the advanced audio telephony codecs today - it's a good watch (embedded below) and is a reminder, among other things, of the sheer number of telephony patents stacked up at Nokia HQ (remember that Apple had to pay up earlier this year?).
Figures are now in from IDC for the world phone market in Quarter 3, 2011, showing the market flattening in the USA and Western Europe as saturation sets in. However, the proportion of smartphones in the overall mix continues to rise. Nokia is still king in terms of sheer numbers, selling over a hundred million phones in the quarter, although Samsung is catching up relatively quickly. IDC's stats table is quoted below, though we don't yet have a breakdown of smartphone-only sales.
Nokia has released its Q3 2011 results, reporting an operating loss of -€71 million, with net sales of €8.980 billion (down 13% YoY). Nokia's Devices and Services division's profits were €132 million. Margins in devices and services were 2.4% (down from 11.3 % in Q3 2010 and up from -4.2% in Q2 2011). Total smartphone device sales were 16.8 million, compared with 27.2 million units in Q3 2010 (down 34% YoY) and 16.7 million units in Q2 2011 (up 1%, QoQ). The results were ahead of expectations and suggest the company has started on the road to recovery.
Today, at the IAA (a car industry event), Nokia announced Car Mode, an application designed for the in-car use of Nokia smartphones. It offers simplified access to Nokia Drive (voice-guided car navigation with Nokia Maps), music and voice calling functionality. In addition, the application also supports MirrorLink (previously known as Terminal Mode), which allows for a rich connection between phone and car. The application, which has been developed in Qt, will be available for download from the Ovi Store in Q4 for Symbian Belle devices and the Nokia N9. Update: added screenshots of Nokia Car Mode.
I was interested to see the starting of the "Near Field Connectivity Blog", under the auspices of Nokia's Developer program, along with some titbits about Nokia's plans for NFC and its devices. Read on for more links and quotes.
Nokia has released its Q2 2011 results, reporting an operating loss of -€487 million, with net sales of €9.275 billion (down 7% YoY). Nokia's Devices and Services division's losses were -€247 million. Margins in devices and services were -4.5% (down 14% YoY and down 14.2% QoQ). However, non-IFRS operating profit was €391 million (down 41% YoY and down 44% QoQ), with Devices and Services non-IFRS profit at €369 million, and margins at 6.7%. Total smartphone device sales were 16.7 million, compared with 24 million units in Q2 2010 (down 34% YoY) and 25.2 million units in Q1 2011 (down 31%, QoQ).
Nokia's Chief Technology Officer (CTO), Rich Green, is to take an indefinite leave of absence for personal reasons. Green joined Nokia in 2010, and was brought into its leadership team in February 2011, reporting directly to new CEO, Stephen Elop. As CTO, Green was charged with overseeing the direction of technological advancement in both Nokia's software and hardware groups. Henry Tirri, head of Nokia Research Center, has been appointed acting CTO.
Bloomberg Businessweek has published an in-depth article, titled 'Stephen Elop's Nokia Adventure', which describes how Nokia's new CEO is trying to turn the company around. It covers his first 8 months at the company and looks at the story behind Nokia's new strategy. There's a lot of interesting detail about the decision making behind Nokia's smartphone strategy, which took place in the first few weeks of 2011.