Nokia reports 6 percent increase in Location & Commerce sales

Telecom Lead India: Nokia has reported 6 percent increase
in Location & Commerce sales in the second quarter 2012.

The Q2 net sales grew to EUR 283 million against EUR 271
million.

The marginal growth was primarily due to the higher
recognition of deferred revenue related to sales of map platform licenses to
Nokia’s Smart Devices business unit and higher sales of map content licenses to
vehicle customers due to higher consumer uptake of vehicle navigation systems.

The decline in Location & Commerce gross margin in
the second quarter 2012 was primarily due to a negative sales adjustment
related to historical license fees in the normal course of business for a
particular customer as well as a shift of research and development operating
expenses to cost of sales as a result of the divestment of the media
advertising business.

Location & Commerce research and development expenses
decreased 14 percent year-on-year in the second quarter 2012 primarily due to
cost reductions as well as a shift in expenses from research and development to
costs of sales related to the divestment of the media advertising
business. 

Nokia’s Location & Commerce business continued to
strengthen its location-based offerings during the second quarter. 
The Nokia Location Platform continued to be adopted by more partners, including
Microsoft’s Bing Maps, which is also now using Location & Commerce traffic
information and geocoding algorithms, and Ford, whose research organization is
using the platform to advance innovation for smart and connected vehicles.

Nokia announced that the Nokia Location Platform will be
a central part of the Windows Phone 8 experience. As such, Windows Phone 8
partners and developers will be able to use Nokia’s location assets to build
location-based apps and experiences of superior quality.

Nokia announced the availability of free turn by turn
navigation with Nokia Drive out of the box for all future Windows Phone 8 users
in North America and the United Kingdom.

Nokia announced the expansion of its location content
offering in India with an increase of coverage by 80 percent to more than 4200
cities and the launch of Destination Maps in 150 malls in 17 cities.

editor@telecomlead.com