Nokia’s 2nd Qtr Results Are Better Than Expected
It seems that all of the reports of Nokia’s untimely demise were greatly exaggerated. By all the numbers seen in this report it seems Nokia is starting to find it’s feet again and with the release of Windows Phone 8 this year may even return to profitability.
According to the Nokia 2nd qtr results they currently have more cash on hand now than they did at this time last year.
“…We ended the quarter with net cash and other liquid assets at EUR 4.2 billion, down from EUR 4.9 billion at the end of Q1 and up from EUR 3.9 billion at the end of Q2 2011. This follows a EUR 742 million annual dividend payment to shareholders. Our gross cash was EUR 9.4 billion at the end of Q2, down from EUR 9.8 billion at the end of Q1 and up from the end of Q2 2011. Thus, both gross and net cash were higher year-on-year.”
You say what about the slow sales of the Lumia devices? I heard that the Lumia only sold 300,000 units from Comscore. Those number are false.
“..Most importantly, we are seeing progress in our Lumia numbers. We sold 4 million Lumia devices in Q2, which is up from about 2 million in Q1, with growth driven by the expanded availability of the Lumia 900 and the Lumia 610 across markets.”
What about the Feature Phone market you say? Nokia is doing pretty well there also.
“During the second quarter, we demonstrated stability in our feature phone business. Our Mobile Phones Q2 volumes of more than 73 million were up quarter-on-quarter…”
What about the price cuts for the Lumia 900? That has to show that Lumia line is failing here in the States right? According to the report this was a planned price drop to counter act the Windows Phone 8 being announced.
“..although Lumia activations have been flat to up in the weeks following the announcement of Windows Phone 8. Thus, leading up to the introduction of the Windows Phone 8 products, we plan to introduce tactical measures and promotional campaigns. As we do throughout any product life cycle, we plan to pursue traditional marketing and promotional activities to encourage the adoption of Lumia devices.”
There is a ton more information in this report than this I just wanted to highlight a few thing for you that clear up some of the number put out there recently about the state of Nokia in general.
If you want to read the whole report (and you should) you can find it here.