Nokia Smartphone Sales Declined In Q4
Nokia today reported a fourth-quarter net loss of 25 million euros as the company saw sales smartphone sales plunge 29 percent.
Nokia says that the devices and services unit, which it is
selling to Microsoft, saw sales fall to 2.6 billion euros in
the quarter, down from 3.7 billion a year earlier. It recorded
an operating loss of 191 million euros compared with an
operating profit of 97 million a year earlier.
Continuing operations, including its networks unit, saw sales slump by more than 22 percent in the quarter compared with a year earlier. Specifically, the Finish company said that Nokia Solutions and Networks (NSN) sales fell to 3.1 billion euros in the fourth quarter from a year earlier.
"The fourth quarter of 2013 was a watershed moment in Nokia's history. Having received overwhelmingly strong support from our shareholders at our extraordinary general meeting in November for the sale of our phones business to Microsoft, we are diligently working towards defining Nokia's future direction. I am pleased with the progress we have made thus far in our strategy evaluation and excited by the opportunities ahead for each of our three continuing businesses: NSN, HERE and Advanced Technologies," said Risto Siilasmaa, Nokia Chairman and interim CEO.
Despite the challenges for NSN, the company seems to be more healthy without the handset business.
"During the fourth quarter, Nokia's continuing businesses produced a healthy underlying operating margin of 12%. While the first quarter of the year is seasonally weak for our continuing operations, we continue to expect the closing of the Microsoft transaction to significantly improve Nokia's earnings profile.
"Today, we are more focused, more innovative and more disciplined. With these fundamental elements in place, we believe NSN is well-positioned to deliver solid business performance for the year ahead," Siilasmaa said.
Nokia also sees growth opportunities for HERE, mainly in the automotive market. The company plans to increase investment evels in 2014.
'Normandy' at MWC?
In related news, Nokia is planning to hold a press conference at Mobile World Congress next month.
The press conference will take place on Monday February 24th, and rumors of a Nokia Android phone, codenamed Normandy, have surfaced several times in recent weeks.
Provided that Microsoft is not expected to have a big presence at Mobile World Congress this year, Nokia could make headlines instead with a new device.
Continuing operations, including its networks unit, saw sales slump by more than 22 percent in the quarter compared with a year earlier. Specifically, the Finish company said that Nokia Solutions and Networks (NSN) sales fell to 3.1 billion euros in the fourth quarter from a year earlier.
"The fourth quarter of 2013 was a watershed moment in Nokia's history. Having received overwhelmingly strong support from our shareholders at our extraordinary general meeting in November for the sale of our phones business to Microsoft, we are diligently working towards defining Nokia's future direction. I am pleased with the progress we have made thus far in our strategy evaluation and excited by the opportunities ahead for each of our three continuing businesses: NSN, HERE and Advanced Technologies," said Risto Siilasmaa, Nokia Chairman and interim CEO.
Despite the challenges for NSN, the company seems to be more healthy without the handset business.
"During the fourth quarter, Nokia's continuing businesses produced a healthy underlying operating margin of 12%. While the first quarter of the year is seasonally weak for our continuing operations, we continue to expect the closing of the Microsoft transaction to significantly improve Nokia's earnings profile.
"Today, we are more focused, more innovative and more disciplined. With these fundamental elements in place, we believe NSN is well-positioned to deliver solid business performance for the year ahead," Siilasmaa said.
Nokia also sees growth opportunities for HERE, mainly in the automotive market. The company plans to increase investment evels in 2014.
'Normandy' at MWC?
In related news, Nokia is planning to hold a press conference at Mobile World Congress next month.
The press conference will take place on Monday February 24th, and rumors of a Nokia Android phone, codenamed Normandy, have surfaced several times in recent weeks.
Provided that Microsoft is not expected to have a big presence at Mobile World Congress this year, Nokia could make headlines instead with a new device.
