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Nokia posts a Q3 2012 loss as it ships 2.9 million Lumia smartphones, weathers a “tough transitional quarter”

Nokia posted a quarterly loss in Q3 2012 of approximately $740 million CDN with underwhelming sales of its Lumia line and a general malaise in its devices and services department.

Indeed, Nokia’s CEO Stephen Elop admits this has been a “tough transitional quarter for our smart devices business,” but with the launch of its upcoming Windows Phone 8 lineup he wants to “return [the] Devices & Services business to positive operating cash flow as quickly as possible, and ultimately provide more value to [its] shareholders.”

On sales of approximately $9.3 billion CDN, Nokia’s net sales were down 34% YoY, with smartphone sales down an astonishing 56%. In North America the company shipped just 300,000 smartphones, down from 700,000 in the previous quarter. While Nokia did manage to sell 77 million mobile phones, 6.5 million of which were Asha “smartphones,” there was a clear downward trend in all but a few metrics.

The company posted a small operating profit from its Nokia Siemens networking segment and posted a smaller loss from its Location segment after inking deals with Amazon and improving its relationship with Microsoft.

And while the company is expected to post another loss in Q4, there is hope on the horizon. Elop hopes for strong initial sales of its Lumia 820 and 920 devices, which will debut in “select markets,” with volume growth in North America especially. Nokia still has a whopping 3.5 billion euros in cash and liquid assets, and is looking to continue to cut expenses in a company-wide restructuring program.

Source: Nokia

  • Is this Bb10?

    Windows phone will fail. Nokia will fail. Long live Android!

    • Re-surface

      The hardware was not good enough in the prior Quarters (smallish battery, NO SD Card and then..no upgradest to W8!)
      Time to leave that Quarter in the past.

      THE Now: the 820 and the 920 Pentabands -Great!
      HEAVY devices- Not so good
      820- no SD card – FAIL!
      920 SD Card- good- but specs simmilar to the Galaxy S2/S2x @$350

      Bottomline:
      PRICE WILL MAKE OR KILL THESE Devices…and the company.
      Put the Lumia 820 at $299
      Lumia 920 at $399 (Same price as the Nexus) and they Might sell, otherwise they will be DOA in North America …again!
      ——-
      PS When will they admit that making ONLY MS phones was a mistake? a LIGHTER version of the 920 with Android at $350 would sell very well! and churning millions would buy the company some time until they get rid of 20-30,000 employees and adjust their size with the demand of their products.
      RIM and NOKIA are inthe same denial of their situation with their egos in the middle of their salvation!

    • Re-surface

      You can’t Make S#$%t like that!

      Nokia should be taking advantage of RIM being at peril, but now it looks like RIM has some more time since Nokia is at peril and out of the Blue MS comes as the new entrant to take advantage of the peril of both of them and…releases a Tablet with Keyboard for $720??
      WTF?

      So now the none of these guys will take advantage of having the other two on the floor.

      So Moto comes with a great phone and (RAZR HD and MAXX) and prices it at $600 (same as the S3) making it too expensive; then HTC arrives with the new version of the One X, the ONE X+; no comments on the name…AND DOESN”T ADD AN SD CARD!!

      So Android release the new Nexus ( $399 seems to be the retail price), drops the Current Nexus from $350 to $299 in November and mops the floor with the competition!

      Wow!, the others can’t complain; they had their chances and they blew it!

  • kenypowa

    I thought Nokia has been in transition for the last 3 years? WP8 is not a game changer. So what’s left for Nokia?

    Personally I don’t mind a Nexus Lumia. No skin required.

    • monsterduc1000

      They should give Android a try =D

    • Keith

      Well you thought wrong. That was only the 3rd full quarter of Lumia sales and the last two quarter have been deflated by the knowledge that W8 would not be coming to the existing handsets.

  • TK Chan

    come on Nokia, same as RIM. We all want to see more choices and competition in mobile phone market. I am tired of seeing just Samsung or Apple everyday

    • BD

      I agree, we need more of a competition other than APPLE and ANDROID. Going with either of those two companies feel like a hipster thing to me. We need more choices.

  • bazinga

    Not suprising given the choices currently out there. Right now the consumer is driving the market.

  • aviking

    Maybe Nokia shouldn’t be doing any exclusives with their phones and give it to every single company to ensure their product is getting as much exposure as possible. Then maybe they would sell more phones and increase profits…too simple?

    But what the hell do I know.

  • zzZZzz

    No SD card? Fine, have at least 32GB internal, offer 64GB for those interested.
    No removal battery? Fine, make sure it can last 24 hrs on moderate to heavy usage.

    Add to that: release on ALL carrier!

    Like someone above said, don’t be stubborn as RIM was (is?) and fix your situation while you still have traction.

  • Ron

    Maybe if they would release the lumia 920 on the most carriers possible it would help! Choosing Rogers only common! The only company that did this was Apple, but back than they didn’t have much competition in the new era of touch smart phones.

  • gwydionjhr

    Re-surface. You’ve got your specs bass-ackwards

    Quote:
    THE Now: the 820 and the 920 Pentabands -Great!
    HEAVY devices- Not so good
    820- no SD card – FAIL!
    920 SD Card- good- but specs simmilar to the Galaxy S2/S2x @$350
    EndQuote.

    The 820 will take up to a 32GB MicroSD card. The 920, with it’s solid polycarbonate body does not accept SD cards.

    Massive memory in phones is SO 2010. With LTE and the cloud, it’s just not as important as it used to be.

  • STY

    Ever since they have taken the stance to forget owners of phones with Anna, and Canadians. I can’t wait till they go under.

    • stylinred

      They didn’t forget canadians stuck on Anna; after all they released a Canadian Belle update for unlocked phones

      its your Carrier that’s forgotten you and told Nokia not to release a carrier variant

      if you want Belle Refresh then download it from Nokias servers and update your phone with phoenix

  • Roger Martin

    Any company going through transition would have a dip in their profits. This comes from uncertainty, as well as heavy investments into business. Nothing surprising here at all, to be honest.

    I am picking up a Lumia 920 once Rogers’ exclusivity runs out (it may only be for 1 month, sources say). It also sounds like their Lumia line will get a lot of support, so your device will be “up to date” for quite some time after purchase.

    I completely do not understand all of this “doom and gloom” talk from some of the posters here. I guess that’s what happens when you read the headlines, but never actually dive into the information itself, thus not knowing what the hell is really going on.

  • Matt

    In the situation Nokia is in now, it will be interesting to see how the carriers will price the new Lumia phones.

  • Craig

    sorry but Microsoft is doomed to fail …. they keep fighting and dishing out millions of dollars but the end result will be the same as RIM

  • andrea33

    Nokia—love your phone, nice design BUT big mistake going with the Windows OS. For me that is a deal breaker…get an Android OS.

  • HighClassFrenchCricket

    Can someone please explain what’s so special about windows phone 8? I just don’t get it. Live tiles? I’m sorry but ICS notification centre mops the floor with this. Application arrangement on wp8 just seems so tedious and inefficient, no grouping, endless swiping…I don’t get it.

    • Keith

      Explanations already abound on the internet but you have to use it with an open mind to experience it. Perhaps no one said it better than Apple co-founder Steve Wozniak when he said Windows Phone was more like a friend than technology and went on to say it’s a work for art.

  • mjolnir

    I am using Android myself, and I love every bit of it; but lets not forget that competition IS healthy. fkcu apple though, sick of their attitude, extremely overrated and the locked and boring OS. WP8 (and RIM) on the other hand should be welcomed and I hope it does good, because it will promote both camps to innovate and competition can only drive prices down in the long run. Win for the consumers!

  • montrealer

    Maybe if they stopped with their bullshit exclusivities with one carrier, they might change

  • ile2010

    They can’t afford not to grant exclusives in North America. Rogers and ATT have way too much muscle due to the ridiculous state of wireless telecommunications on this side of the pond.

    It’s not like people will be lining up to get a WP8 device. Nokia needs Rogers, it’s not the other way around.

    And who cares if only one of the Big 3 gets it here? It’s not like their plans actually compete in price. If I was on Bell and really wanted a 920, then I’d switch to Rogers. $70 to Rogers every month will get you the same crappy plan as $70 will on Bell.

    • RL

      Actually I would have lined up for it but it would cost me way to much to switch to Rogers, moneywise and the ability to make calls(crap coverage).

  • jay

    nokia is one of the best phone makers in the world. i think there devices are even higher quality like apple but windows is not so popular and that is the problem here. good or no good. people have to buy it to make it popular or?

  • stylinred

    The results for Q3 actually aren’t disappointing it was expected Nokia would do horribly

    What’s amazing is Symbian has only had 1 new phone released the entire year (808 pureview) and Symbian smartphones (not featurephones) are STILL outselling nokias Lumias by like 3 million devices

    • stylinred

      to add, it was expected Nokia would do horribly however Nokia performed better than the low expectations

  • DoctorCell

    the 920 will be rogers exclusive… fail.

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