Nokia Lumia's, which are what Nokia has focused as the future of the company, have gained a 27% increase in sales and this is during a traditionally slow quarter for phone manufacturers. This is with all the supply issues that Nokia had. The difference in the 2Q will be that the Lumia 520 & 720 were launched to take advantage of the full 2Q. The 920 is old and pretty much done, unless we get some surprises in China. The 620 will benefit 2Q more than it did 1Q because it's supply took forever to reach India and other countries. So that leaves the 928 which will be promising due to the fact that Verizon's 822 did well. But the 928 will only help 2Q if Nokia gets it to Verizon (in time), hopefully by May. --GET SOME IRGUNCEY NOKIA!--
Nokia expects the increase in smartphone sales to continue. With that, better margins will help grow the pathetic revenue Nokia posted in 1Q. The entire Asha line is getting a facelift so I wonder if their was not the same availability causing their sales to fall just as Symbians did a few quarters back....
All in all, 2Q will be better than the lackluster success Nokia showed in 1Q. Yet they are getting closer to their goals and they have good phones. Nokia just need the momentum to keep building. Another thing to note is that their cash balance went up, which has kept the stock above $3. I expect a lot better performance from Nokia in 2Q. I think they'll be able to get their act together.
I think Nokia will keep struggling in States - as you stated L920 is pretty old now and L928 wont start selling until May (probably). So Q2 numbers for States could be between Q4-Q1 results - 400-700k.
All the hopes to get bigger numbers from the rest of the world (as usual).
I don't think the "problem" with the 920 is the age - it was introduced 8 months ago, available for sale I the US for about 6 months. What's "old" is what it can do - marginally better specs on several functions, but no real "wow" factor. So, while the phone isn't old, what is can do is roughly familiar, so the phone seems old.
It's a good phone and it should be selling in greater volume. Problem - no marketing, at least in the US.
I don't like to sound cynical, but this is business, and business deals with facts - I'd rather own a company that makes an average phone that has great marketing, than a company with a great phone that has poor/no marketing. Sad but true, and that's Nokia's situation today.
I don't get it - Balmer should understand this - he use to work for Proctor and Gambol, and they could sell (almost) anything - you see it all the time - people buying junk because they've been convinced it's really good stuff. Well, Nokia has an advantage - it's actually good stuff they're trying to sell. It shouldn't be that hard to sell it, but it will take some funds. If MSFT is serious about mobile, they need to promote Windows phones, and that means Nokia phones.
If we don't see significant marketing in the next 6 months, then Houston, we have a problem. And the marketing will be improved if MSFT and NOK can make something that is in some way unique, and something that people want (in other words, something innovative, and the MSFT "eco-system" could be sold as innovative with a few more tweaks, and a hefty dose of marketing).
We'll see with Windows "Blue", and the new Xbox.
Good post. I think in general the market to see Nokia Lumia sales rise as a positive thing. The 27 % percent rise might even be more of an impact just yet if Apple fails to maintain its Q1 number over Q4 which is likely.
This is a very important year not just for Nokia, but for MSFT as well. We are likely to see renewed push once Window Blue comes out which is soon. Msft wants to get its mobile train going before its current line of business goes down. After Surface problems and HTC cold shoulder, they really needed Nokia. So in a way, we are like investing in a MSFT department , but one which is very important for them. But at a price of $3 , I will not complain much. No one is now calling for Nok to be bk any time soon.
Trust me, I'm not happy that Nokia had all those supply issues. Even the fact that countries like India orderd so many Asha phones in 4Q that they built up inventory for 1Q, but the growth in Lumias is the key here. Like you said Blue, Msft, new phones, the push is still going in the right direction.
Wish I had free cash funds to buy at these levels.