Nokia’s Q4 2012 Results: Posts $585 million profits, officially declares 808 PureView the last Symbian device

Nokia today have released their interim report of the Q4 2012, finally after a long time, making a return to profitability by posting €439 ($585) millions of profit. The company shipped 86.3 million mobile devices in total ( +4% from what they shipped in Q3 2012 and -24% from what shipped in Q4 2011 ), in which feature/dumb phones were 79.6 million units ( 4% increase from the unit shipped in Q3 2012 and 66% decrease from Q4 2011 ), and Smart Devices were 6.6 million units ( +5% when compared to Q3 2012 and -66% from Q4 2011 ) respectively. With the introduction of the new line of Windows Phone 8 powered Nokia Lumia phones, the company managed to ship 4.4 million units of Lumia devices in total, increasing by 50% from 2.9 million units in the previous quarter. And the decline continues for their Symbian smartphone range as the shipments fell from 3.4 million units in Q3 2012 to 2.2 million units in Q4.

As for the ASPs (Average Selling Price), then for the Smart Devices, it increased by 20% to €186 from €155 in the previous quarter, and increased by 33% from €140 in Q4 2011. For the Mobile Devices, ASP remained same €31 as it was in the previous quarter but fell by 3% compared from Q4 2011. Nokia’s Lumia line have been selling at higher ASPs right from the start, compared to their Symbian range.

The return to profitability this quarter is indeed a big thing for Nokia as they were really struggling to get over their huge losses in the Devices & Services segment in previous quarters. Nokia earned $585 million of profit in Q4 2012 compared to a $750+ million loss in Q3 2012 and $1.2 billion loss in Q4 2011. Nokia’s net cash also rose from €3.56 billion to €4.36 billion over the quarter but fell 22% from €5.58 billion in Q4 2011. Most of the profits earned by Nokia in Q4 have come from their Nokia Siemens Networks (NSN) arm as its net cash increased by 14% from the previous quarter and by 5% compared to Q4 2011.

Commenting on the results, Nokia CEO Stephen Elop, said:

“We are very encouraged that our team’s execution against our business strategy has started to translate into financial results. Most notably we are pleased that Nokia Group reached underlying operating profitability in the fourth quarter and for the full year 2012.

While the first half of 2012 was difficult for Nokia Group, in Q4 2012 we strengthened our financial position, improved our underlying operating margin in Devices & Services, introduced the HERE brand to expand our mapping and location experiences, and drove record profitability in Nokia Siemens Networks.

We remain focused on moving through our transition, which includes continuing to improve our product competitiveness, accelerate the way we operate and manage our costs effectively. All of these efforts are aimed at improving our financial performance and delivering more value to our shareholders.”

Looking to Q1 2013, Nokia predicts their Devices and Services business to fall by approximately 2%. It will be interesting to see how the new lumias performs in Q1 in the countries in which they just got launched like India, and other neighbouring countries, and ofcourse, how much will the NSN contribute in Q1 2013 to lessen this negative outlook.

With the release of the Q4 2012 report, Nokia also made clear that the Nokia 808 PureView was the last Symbian handset by them. This came as a no-shocker because Nokia were not planning to release any other after 808, and also they had to cover the Symbian shipments by their Lumia shipments (which they did in Q4 2012). Here’s what nokia officials said in the sales report:

During our transition to Windows Phone through 2012, we continued to ship devices based on Symbian,” the company wrote. “The Nokia 808 PureView, a device which showcases our imaging capabilities and which came to market in mid-2012, was the last Symbian device from Nokia

Farewell Symbian. You will be remembered in the history of wonderful smartphone operating systems. We all had some really fantastic experiences with you. The last handset i.e. 808 Pureview is still one of the best smartphones one could buy. It excels many smartphones of today, not even in the camera department but also in ‘smartphone’ department too.

Anyways, getting back on to the main topic, Nokia Q4 results. Pleased to see nokia landing in the safe zone after a long time, but there’s alot to be done yet. The Q1, as Nokia predicts, is going to be a difficult one because all the holidays are over now and performance are solely based on how the new lumia devices pleases the consumers in middle east, asian countries, etc. What do you think about these results by Nokia? Tell us by commenting below.

Get the full Interim report of Nokia’s Q4 2012 in a PDF HERE

Meanwhile, a news have also came up that Nokia will not pay dividend this quarter.

The dividend omission “is a very important step because it shows management is conscious of the work that is ahead,” said Eric Beaudet, an analyst at Natixis Securities in Paris. “It’s clearly a strong signal to the market that says ’Don’t worry about our balance sheet, we’ll do what it takes.’”



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