Nokia has just reported is results for Q1 2013 with sales of $ 7.6 billion and a loss per share of $ 0.03 — a mixed result compared to analyst estimates, who had expected a loss per share of $ 0.05 on revenues of $ 8.65 billion (€6.6 billion). That estimated loss per share is effectively half of what it was a year ago, when Nokia posted a loss of $ 0.08 per share. Analysts had also estimated that Nokia would report sales of 5.6 million Lumia devices for the quarter, and there Nokia was right on target. The company has been building out the range of handsets it’s been selling in the last quarter, extending further into midrange and less expensive models. These are small but encouraging signs. To put these Lumia sales numbers in to context, a Reuters survey estimates that in the same quarter, Samsung has shipped 61.6 million smartphones, while Apple has shipped 36.9 million. In its Q4 2012 results Nokia posted better-than-expected results, with 4.4 million sales of its new Windows Phone Lumia smartphones and sales of $ 10.7 billion, but it also warned of a weaker Q1. At the time, Nokia said it expected operating margin to be negative 2%, plus or minus four percentage points, citing “competitive industry dynamics” that have negative impact on smart devices and mobile phones. In other words, ever more competition from Apple and Samsung, which continue to keep a stronghold on smartphone sales, even as Windows Phone models, led by Nokia, are seeing gains. Indeed, Nokia noted that although Lumia smartphones continue to “ramp up” this may not offset larger consumer demand or the wider economic environment. It also noted last quarter that it expected Location & Commerce non-IFRS operating margin in the first quarter 2013 to be negative “due to lower recognized revenue from internal sales, which carry higher gross margin, and to a lesser extent by a negative mix shift within external sales.” CEO Stephen Elop announced in February that its mapping division would rebrand as “Here,” dropping the Nokia name, partly so that it could better target cross-platform business. Indeed, not only does it power Amazon’s location services, but Nokia’s maps are also available for Android and iOS, in addition to Windows Phone. More to come
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