Nokia reports a $1 billion operating loss, shipped 4 million Lumia smartphones in Q2

Ian Hardy

July 19, 2012 7:32am


Over the past few months Nokia has launched several new Lumia handsets in Canada, notedly the 610, 710, 800 and 900. We previously reported that Canadian carriers were happy with sales numbers, but today Nokia announced its financial results for Q2 2012. According to the numbers they shipped a total of 4 million Windows Phone devices – 600,000 of them were directly from North America, but no word on Canadian numbers. The average selling price for Nokia’s Lumia devices decreased in the quater from €220 ($273 CDN) in Q1 to €186 ($230 CDN) in Q2. Nokia sold a total of 83.7 million phones in the quarter, but represents a drop of 4.8 million Q2 2011 – this includes basic devices, plus Windows Phone and other smartphone platforms that include Symbian and MeeGo. Total net sales reached $9.22 billion, however this was offset by a massive net loss of about $1 billion (€826 million).

Stephen Elop, Nokia’s CEO, said “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.”

Source: Nokia (PDF)

  • Ronll

    How about some trolls. Since people love chopping Down RIM let’s take a stab at Nokia. Nokia lost 1 billion dollars and they got nothing coming…. RIM is working on BB10 and loses 1 Billion and everyone jumps up like its the end of the world

    • Mark

      Yeah, RIM has some problems with holding market share and they were mismanaged for a while, but its not like they have any debt. They not really in financial trouble and unless they’re bought up for their valuable IP then they’re not going anywhere for a while.

      But this Nokia news isn’t a huge shock. They just changed direction and jumped on an upstart OS (windows). Its going to take time to get this off the ground just as it took Android a couple of years to really get moving. They may not be #1 ever again, but they’ll always be a player.

    • RIM?

      RIM has been working on BB10 for the last 2 years LOLZ!!!

      THey are gone, SOOOOOOOOOOOOOOO GONE!!!
      COME!
      Let us dance and prance on their grave.

      Nokia actually has a product in the market, the Lumia, which is a very nice phone. What does RIM have? Plasticy, antiquated, Curves from friggin 2004?

      LOLZ

    • Sawitcoming

      Yes I saw this coming. Nokia really really screwed up with the Nokia N97 and did not show ANY loyalty to their customers to fix the N97.

      They lost many many loyal customers because they woulkd not and did not fix the N97 which was suppost to be their flagship super phone. Instead Nokia pushed other phones which NO ONE would want to buy after spending $600-$1000 on the N97 with no fixes etc.

    • baboo

      Did Elop give Thorsten a call? Elop’s speech sounds like Thorsten’s song and dance lol

    • Ronll

      BUDDY it apple, the people who made your phone over 2 years to make their platform…. Plz dont talk

  • Keith

    “got nothing coming” Wow you ‘really on top of things aren’t you. Nokia already has incredible style, build quality, exclusive apps, etc. in their current Lumia line and they are on the verge of releasing much higher-end Window Phone 8 supershpones with PureView sensors. They will also be releasing Windows 8 tablets. And while I hope RIM can turn things around they will not have anything even close to that anytime soon.

    It is also worth noting that the Lumias have had back-to-back quarters of 100% growth which makes them the only product line Nokia or RIM has that is growing.

    • d3v14n7

      @armrob

      “they will not be afraid to spend to make WP8 successfull”

      Yea, because that worked so well for Nokia, MS and WP7 in the past 2 years… Considering both Nokia and MS have been operating at a loss (first time ever for MS), what makes you think it will be any different with WP8? This is exactly what was said about WP7 over 2 years ago, yet it’s done absolutely SQUAT…

      MS’ only saving grace is the Surface, it’s pretty much the only mobile product people actually want… Much like RIM’s BB10, the difference here is that RIM already has a huge consumer base in the professional market who aren’t ready to make the switch to something else, MS doesn’t. With Android completely dominating the smartphone market (and still growing), iOS in 2nd place and RIM in 3rd, MS has its work cut out for them…

  • armrob

    actually things are looking worse for RIM. Nokia has a Windows Phone 8 coming and the backing of Microsoft and they will not be afraid to spend to make WP8 successfull.
    RIM on the other hand seems to be strugling technically with BB10, and with delays after delays its hard not to be pessimistic. and RIM being the only one that charges the carriers a fee for using the blackberry network, carriers make less money with Blackberry users. so dont expect a lot of support there.
    the only thing RIM has going is their 70+ million active users but most of them are in emerging and third world countries. and they dont bring as much money as European and north american users. so debt or no debt , if they keep loosing market share where it counts, they wont be here for that long.
    Nokia is turning into a different company and these losses are the cost of transition. they have tied their fate to the success of windows phone and its a good thing because Microsoft has deep enough pockets to keep fighting for a long time. the kind of time RIM does not have. when (and you can bet they will) announce another delay for BB10 or that it will ship with features missing like the playbook, the countdown will start for good.

    • d3v14n7

      @armrob

      “they will not be afraid to spend to make WP8 successfull”

      Yea, because that worked so well for Nokia, MS and WP7 in the past 2 years… Considering both Nokia and MS have been operating at a loss (first time ever for MS), what makes you think it will be any different with WP8? This is exactly what was said about WP7 over 2 years ago, yet it’s done absolutely SQUAT… It’s going to take much more than that for WP8 to be successful.

      MS’ only saving grace is the Surface, it’s pretty much the only mobile product people actually want… Much like RIM’s BB10, the difference here is that RIM already has a huge consumer base in the professional market who aren’t ready to make the switch to something else, MS doesn’t. With Android completely dominating the smartphone market (and still growing), iOS in 2nd place and RIM in 3rd, MS has its work cut out for them…

  • stylinred

    Your story has 1 fallacy

    Nokia sold 600,000 devices in North America this includes Lumia, Symbian, and S30 (7-11 paygo phones)

    Symbian sales have actually increased in North America as well in Q2 by 150% (accounting for .5% of all NA device sales whereas WP accounts for 3% which is split between Samsung HTC Nokia)

    • stylinred

      and if Nielsens marketshare ratios hold true than the lions share of that 3% goes to Samsung & HTC

    • Hilman

      Correction, 600,000 phones were shipped, that is a HUGE difference to phones that were actually sold. Are 500,000 of them still sitting in on a warehouse shelf?

      Android SELLS over a million a day, this was 4 days worth (of shipped no less) in a whole quarter, YAWN. This O/S has been out for almost 2 years and this is all it can muster with billions of PR? #FAIL

    • Keith

      @Hillman,

      There was some cofusion about shipped or sold but Nokia has since affirmed on their conference call that it is 4 million sold not shipped.

  • Informer

    Only ios and Android will survive. Everything else is fail!

  • Grey

    @Informer, it would be a sad world if we were left with only those 2 to choose from. While both are good platforms we need more competition to drive innovation and design.

  • astudent

    Remember when people said Ford was going to tank? As I recall, Ford managed to get themselves out and now are making pretty good cars. Nokia is in the same boat, these things TAKE TIME. For once the internet community i.e. the trolls who bash companies on the slightest thing, need to understand that it is a slow transition…for ford it took 6 years AND without bailout money! Once Nokia releases a killer product, they will be okay.

    • GbyeNokia

      @astudent

      And this was supposed to be their killer product :)

  • Sawitcoming

    On that note – Samsung is going to rule the market for a long long time if they keep making super phones that work and work well.

  • Dalex

    Why are some of you posting such ignorant statements. Why would you want RIM or Nokia to fail? Even if you use another platform (I use Android), you can appreciate the competition, because you, the consumer, ends up winning in the end. No one is forcing you to use Windows Phones or Blackberries, but they damn well better survive. A world with just Android and IOS available would be terrible for innovation and pricing.

    • Alpha

      To some people, a rectangle with rounded corners and a walled garden ecosystem is all they need. There no other shapes in the world.

  • GbyeNokia

    “The average selling price for Nokia’s Lumia devices decreased in the quater from €220 ($273 CDN) in Q1 to €186 ($230 CDN) in Q2″

    So almost everyone got the cheapest lumia. They have to accept that WPOS 7.5 was a failure and move on.

  • DanT

    Failed to mention after IP Licensing deals + quarterly earnings from Microsoft they come out with +125 million net cash.

    • stylinred

      and that’s after paying $750million in dividends to shareholders