Nokia Back In The Fight With $585 Million Q4 2012 Profit And $10.73 Billion In Revenue
The struggling Finnish company, Nokia, appears to be regaining its lost glory slowly, as the company announced $585 million profit for Q4 2012 during its earnings call recently. That's not a lot considering that total revenue was $10.73 billion; however, it is a start.
Nokia managed to sell over 4.4 million Lumia devices, this compared to the 2.9 million units sold in Q3. Furthermore, smartphone shipments fell from 35.1 million units to 6.6 million, which was due to its transition from Symbian to Windows Phone.
"We are very encouraged that our team's execution against our business strategy has started to translate into financial results. Most notably we are pleased that Nokia Group reached underlying operating profitability in the fourth quarter and for the full year 2012. While the first half of 2012 was difficult for Nokia Group, in Q4 2012 we strengthened our financial position, improved our underlying operating margin in Devices & Services, introduced the HERE brand to expand our mapping and location experiences, and drove record profitability in Nokia Siemens Networks. We remain focused on moving through our transition, which includes continuing to improve our product competitiveness, accelerate the way we operate and manage our costs effectively. All of these efforts are aimed at improving our financial performance and delivering more value to our shareholders," noted Stephen Elop, CEO.
With Nokia finally generating profits, one may think that everything is going to be fine from now on, but could be far from the truth. With Symbian kicked to the curb, Nokia is shipping far less smartphones than it did a few years ago. The amount of devices shipped and sold won't rise until Windows Phone gains enough marketshare to warrant massive growth. Until then, Nokia will continue to struggle.