Nokia Q1 Results, very quick comments by Tomi Ahonen.Two yrs ago iused to hate to read his blog&now i believe him in Eflop failure strategy.
April 18, 2013
April 18, 2013
Nokia Q1 Results, very quick comments
So yeah, Nokia Q1 results are out. Smartphone sales down 8% from 6.6M in Q4 to 6.1M in Q1. Preliminary market share estimate now: 3%. Smartphone unit continues to generate loss, now 16% loss. Lumia was 5.6M and Symbian down to 0.5M. Still even at these last levels Nokia has not managed a 1-to-1 conversion from remaining last Symbian loyal Nokia customers to Lumia Windows Phone, in this past quarter the loss was 1.5 to 1., for every 3 customers attempted only 2 willing to accept Lumia.
Wanna see irony? Nokia Lumia ASP (Average Sales Price) is down now to 182 Euros (237 US dollars) while Symbian ASP is up - massively - to 290 Euros (377 US dollars). If your smartphone unit is generating a loss, and one product line sees declining average prices, and the other product line is seeing a huge JUMP in prices, wouldn't you want to promote, prolong and sustain the 'growing price' product line? To try to get your smartphone unit back to profitability? Or would you kill the growing-price product line, and rather push the declining price prodcuts instead? Yeah. Elop truly failed basic Economics 101 at McMaster University in Canada.
That American dream? Please kiss it goodbuy. Now in Q1, Nokia total US market smartphone sales - all essentially Lumia obviously, down 45% from Q4 to 400,000 units only. And how did the price do? The US average price is down 10%. So Americans have seen the Lumia, Windows Phone and Nokia-Microsoft and say loudly - not for me! Exactly - EXACTLY - as we heard from the MKM survey of US consumers and their smartphone preferences....... (Do I need to remind you, that just before the Elop Effect, Nokia sold 2.6 million phones per quarter in the US market???)
Elop must be fired. This strategy has totally failed. Nokia's Lumia series running Windows Phone is still bleeding customers, refusing to transition even at a 1-to-1 level from Symbian. Nokia had 34% market share in smartphon