Looks like things are finally on the up for Nokia. Well, better than expected at any rate.
The embattled Finnish mobile giant today reported a solid Q4, with its Lumia and Asha range of smartphones leading the way. The company says that Devices & Services division “exceeded expectations and achieved underlying profitability”.
The company says it sold some 4.4-million Lumias in the quarter, contributing a large portion of the EUR 1.2-billion the company earned from smart devices during the quarter. Its decision to target emerging markets with its Asha series of low-end smartphones meanwhile is clearly working out. The company sold 9.3 million Asha full touch smartphones in the same period.
While the numbers are still relatively small, especially in relation to the five-million iPhone 5s sold on its opening weekend, the fact that Nokia sold enough for to be profitable means that it’s demise has taken another couple of steps from the precipice it’s been balancing on in recent times.
Nokia CEO Steven Elop was bullish on the performance of the division but also highlighted the importance of its Nokia Siemens Networks division:
We are pleased that Q4 2012 was a solid quarter where we exceeded expectations and delivered underlying profitability in Devices & Services and record underlying profitability in Nokia Siemens Networks. We focused on our priorities and as a result we sold a total of 14-million Asha smartphones and Lumia smartphones while managing our costs efficiently, and Nokia Siemens Networks delivered yet another very good quarter.
The company estimates that Nokia Siemens Networks net sales in the fourth quarter 2012 were approximately EUR 4.0-billion.
Nokia does however caution that Q1 for 2013 probably won’t be as good as Q4. “Seasonality and competitive environment are expected to have a negative impact on the first quarter 2013 underlying profitability for Devices & Services, compared to the fourth quarter 2012”, it says.