NEW YORK, January 16, 2013 /PRNewswire/ --
After selling around 86.3 million units in the fourth quarter of 2012, Nokia estimates that Devices & Services net sales total at around EUR 3.9 billion. This result exceeded expectations, helping the company regain momentum and the interest of investors.
With preliminary Q4 figures released, Nokia Corporation (NYSE: NOK) [Full Research Report](1) Nokia estimates that Devices & Sales net sales in the fourth quarter 2012 amount to EUR 3.9 billion, a count in excess of 86.3 million units. The Finland-based company comments that the Devices & Services non-IFRS operating margin for the fourth quarter 2012 was between break even and positive 2 percent, a great result compared to the previous outlook of approximately negative 6 percent. The actual numbers for Nokia's fourth quarter earnings are scheduled to be out on January 24.
For additional due diligence beyond the scope of this article, read our full featured research report on Nokia Corporation including full detailed breakdown, technical analysis, analyst ratings and price targets - absolutely free of charge - available at: http://www.nationaltradersassociation.org/r/read_report/2dd2_NOK.
The company stated multiple factors that affected its performance in the fourth quarter of last year. Its mobile phone business units and its line of Lumia smartphones caused soaring income for the company. Furthermore, cost reductions under the company's restructuring program lowered operating expenses. Stephen Elop, Nokia CEO, comments on the preliminary Q4 information, "We are pleased that Q4 2012 was a solid quarter where we exceeded expectations… we sold a total of 14 million Asha smartphones and Lumia smartphones while managing costs efficiently, and Nokia Siemens Networks delivered another very good quarter."
The company's stunning results have given it a better position to challenge smartphone giants like Samsung and Apple. Within the past few years, Nokia has been lagging behind its competitors, falling from being a market leader to a struggling has-been. However, its new line of smartphones has saved what everyone thought was a hopeless cause. Achieving positive results for the last quarter will help the company regain its footing, and analysts advise that the Nokia has to consolidate on the advantages it has gained to grow further from here.
Nokia is scheduled to release new smartphones like the Lumia 620 to continue its momentum. Asha smartphones are also helping the company gain higher income. In the fourth quarter of 2012, Nokia's line of Asha smartphones exceeded the sales of Lumia smartphones. 9.3 million Asha units were sold, compared to Lumia's 4.4 million units sold. Asha smartphones are popular in India, Eastern Europe, Africa, and Latin America - price-sensitive markets where affordable smartphones are more attractive.
Nokia's fourth quarter sales and performance reflects the company's ability to go against the odds. If the company can keep its momentum, we may find it performing at par with its competitors.
Nokia continues to develop affordable and feature-rich smartphones. Its third and most affordable Windows 8 smartphone, the Nokia Lumia 620, will be available starting this month. Developing more products that are inexpensive but boast a full range of features will help the company become even stronger in emerging markets.
But the company is not quick to assume that its results will automatically be better from here. Nokia expects its non-IFRS Devices & Services operating margin in the first quarter of 2013 to be around negative 2 percent, plus or minus four percentage points. This is because of the competitive nature of the industry and also because the first quarter is generally weaker in terms of sales.
If the company takes the opportunity to develop more strategies to become more competitive, then perhaps we'll see better days for Nokia in the future.
(1) The Full Research Report on Nokia Corporation - including full detailed breakdown, analyst ratings and price targets - is available to download free of charge at: http://www.nationaltradersassociation.org/r/entire_report/2dd2_NOK
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SOURCE National Traders Association