Wednesday, January 25, 2012

Nokia Posts Q4 2011 Net sales of EUR 10.0 Billion, Down 21%

Nokia reported net sales of EUR 10.0 billion for the fourth quarter of 2011, down 21% from Q4 2010 and up 11% from the preceding quarter. There was a loss of nearly EUR 1.1 billion.

Sales of devices and services overall fell by 29%: in Europe, these sales fell 38%, in China by 40% and in North America, these sales fell by 77%.

On the bright side, Nokia reported that the sale of more than one million of its new Windows-based Lumia phones.

"In the war of ecosystems, clearly there are some strong contenders already on the field. And with Lumia, we have demonstrated that we belong on the field. Our specific intent has been to establish a beachhead in this war of ecosystems, and country by country that is what we are now accomplishing. To date we have sold well over 1 million Lumia devices. From this beachhead of more than 1 million Lumia devices, you will see us push forward with the sales, marketing and successive product introductions necessary to be successful. We also plan to bring the Lumia series to additional markets including China and Latin America in the first half of 2012," stated Stephen Elop, Nokia's CEO.

Nokia is now preparing to launch the Lumia phones in China, Latin America and other markets. The company expects 2012 will be its year of transition and has not provided a sales outlook as before.

Sales at Nokia Siemens Networks for Q4 2011 amounted to EUR 3.815 billion, down 4% from last year but up 12% over Q3 2011. The company said the year-on-year decrease in Nokia Siemens Networks' net sales in the fourth quarter 2011 was driven primarily by a decline in sales of infrastructure equipment, which more than offset the contribution from the acquired Motorola Solutions networks assets and a slight increase in sales of services. Excluding the acquired Motorola Solutions networks assets, net sales would have decreased by 11% year-on-year. The sequential increase in Nokia Siemens Networks' net sales in the fourth quarter 2011 was driven primarily by industry seasonality. Services represented slightly over 50% of Nokia Siemens Networks' net sales in the fourth quarter 2011.

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