EUR 4.2 billion from Devices & Services business in the first quarter 2012.
The EUR 4.2 billion comprises mobile phones net sales of EUR
2.3 billion (71 million units), smart devices net sales of EUR 1.7 billion (12
million units), and devices & services other net sales of EUR 0.2 billion.
Nokia said factors such as competitive industry dynamics
negatively affected net sales in the Mobile Phones and Smart Devices business
units, particularly in India, the Middle East and Africa and China.
Nokia estimates that devices & services gross margin
(including devices & services other) in Q1 2012 was approximately 25
percent, with mobile phones gross margin of 26 percent and smart devices gross
margin of approximately 16 percent.
In Q1 2012, Nokia sold more than 2 million Lumia devices at
an average selling price of approximately EUR 220.
“Our disappointing Devices & Services first quarter
2012 financial results and outlook for the second quarter 2012 illustrates that
our Devices & Services business continues to be in the midst of
transition,” said Stephen Elop, President and CEO of Nokia.
Nokia has seen sequential growth in Lumia device activations
every month since starting sales of Lumia devices in November 2011. The Windows
Phone ecosystem is attracting developers and has expanded rapidly with more
than 80,000 applications available.
Nokia estimates that in Q1 2012, the company’s gross cash
and other liquid assets were approximately EUR 9.8 billion, and Nokia’s net
cash and other liquid assets were approximately EUR 4.9 billion. The sequential
decline in net cash and other liquid assets was driven by devices &
Services, which experienced unfavorable and non-recurring net working capital
changes as well as operating losses.
In the Smart Devices business unit, Nokia is increasing
investments in Lumia to bring more products to more consumers in more markets.
In the Mobile Phones business unit, Nokia is taking tactical
pricing actions in the near term and plans to bring new products to market in
the second quarter 2012.
