Nokia narrowly beat expectations, I don’t think the details are that pretty


  • Big loss due to goodwill impairment that finally came
  • Only by removing few hundred million in non-recurring costs from the income statement that recur every quarter does Nokia become profitable
  • Narrowly beat consensus estimates
  • Smartphone revenue down 38 per cent
  • Smartphone ASP down to 140
  • 1+ million Lumias, not very encouraging, although the design of the device is awesome
  • Mobile phones revenue down 28 per cent, apparently that is called “solid performance”
  • Mobile phone ASP down to 32, how do you make a profit with that
  • 19.6 smartphones shipped, Apple now almost twice as big
  • North America shipped units -81 per cent y-on-y, good luck with Lumia 900
  • NSN actually profitable
  • Poor outlook going forward, predicting losses
  • No longer-term guidance at all
  • Net cash is still at 5.5 billion euros
  • Share up 5.7 per cent as of now
  • 4 € is more or less the correct price


  • -  Nokia expects its non-IFRS Devices & Services operating margin in the first quarter 2012 to be around breakeven, ranging either above or below by approximately 2 percentage points. This outlook is based on our expectations regarding a number of factors, including:
    • -  competitive industry dynamics, particularly impacting our Smart Devices business unit;
    • -  a greater-than-normal seasonal decline in Devices & Services net sales;
    • -  timing, ramp-up, and consumer demand related to our new products;
    • -  the macroeconomic environment.
  • -  Nokia continues to target to reduce Devices & Services non-IFRS operating expenses by more than EUR 1 billion for the full year 2013, compared to the recasted full year 2010 Devices & Services non-IFRS operating expenses of EUR 5.35 billion.
  • -  Nokia and Nokia Siemens Networks expect Nokia Siemens Networks non-IFRS operating margin to be negative in the earlier part of 2012. In the first quarter of 2012, Nokia Siemens Networks expects substantial charges related to its previously announced global restructuring program aimed at maintaining long-term competitiveness and improving profitability. Due to the nature of the restructuring program as well as prevailing uncertain macroeconomic conditions, the timing of improvements in profitability is uncertain and therefore Nokia Siemens Networks’ non-IFRS operating margin in 2012 is expected to be volatile. Thus, Nokia and Nokia Siemens Networks do not believe it is appropriate to give specific full year or quarterly guidance for Nokia Siemens Networks during 2012.
  • Nokia Siemens Networks continues to target to reduce its non-IFRS annualized operating expenses and production overheads by EUR 1 billion by the end of 2013, compared to the end of 2011.

North America and Greater China revenues are down even sequentially.

Revenue down big y-on-y, but at least their are up sequentially. Smartphone revenue is down 38 per cent.

Nokia Siemens Networks is actually profitable although in its outlook Nokia expects NSN to make losses at least in the earlier part of 2012. Location & Commerce is profitable without the goodwill impairment.


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