Jolla Sell Less Than 20,000 Smartphones in 2014?
Plucky Finnish smartphone manufacturers Jolla have never revealed exactly how many smartphones they have managed to sell but with the recent revelations of their financial performance in 2014 I am going to do some equations that give us a ballpark figure on how many Sailfish running phones may have been shifted last year.
Digitoday report that Jolla suffered a €10.2 million loss in 2014, with net income at €4.1 million. From these numbers I have come up with an estimate of 17,700 smartphone sales. Here is how I get these numbers:
If Jolla did indeed manage net sales of €4.1 million, then I’ll add 20% for tax, which gives us €4.92 million. If we divide this number by the cost of a Jolla smartphone, €249 it gives us a figure of 19,759. We need to remember Jolla also sell accessories, like The Other Half which would have made up some of this income. How much is anyone’s guess, mine happens to be 10% which is probably very liberal. So taking 10% off 4,920,000 gives 4,428,000. Divide this number by the cost of a handset (249) and it gives us 17,783.
If this number is anywhere near correct then we can see why the company, which took on development of Nokia’s abandoned Meego Harmattan OS effort, are delaying the release of their tablet, and we see what a big job they have ahead of them.
I personally have nothing but admiration for Jolla, entering such a highly competitive environment against giants like Apple, Samsung and Microsoft. Their passion is obvious and for this reason I hope they can make their company profitable.
I am curious to know what you guys think of my figure. Have I messed up my maths? Have I failed to take anything into consideration? Let us know.
Update: As you can read in the comments, Richard Yates has pointed out that Finnish tax is actually 24%, which would put Jolla’s gross sales income at just over €5 million. There is also Richard’s point that devices may have been sold at reduced rates. While this would increase the overall numbers, it still indicates that 2014 sales were under 20,000. For this reason I am sticking with my original guess.