updated 07:09 am EDT, Thu April 18, 2013
Nokia shows positive signs with Lumia sales up 27 percent
Nokia has published its Q1 2013 interim report revealing that its operating income reached $7.7 billion for the period January through to the end of March. Importantly, in signs that its Lumia smartphones running Microsoft's Windows Phone OS is beginning to gain traction, the Finnish company reported its Lumia sales were up 27 percent over the previous quarter. For the first time its Lumia smartphones cracked the 5 million mark, selling 5.6 million units in total.
"At the highest level, we are pleased that Nokia Group achieved underlying operating profitability for the third quarter in a row," said Nokia CEO Stephen Elop. "While operating in a highly competitive environment, Nokia is executing our strategy with urgency and managing our costs very well," he added.
Nokia's operating loss for the quarter was just $150 million, indicating that the company may have helped to stem its cash flow issues. Using the non-IFRS method, the company's operating profit margin was 3.1 percent, or $236 million. However, it still has a significant way to go before it can be said to have 'turned the corner.' It's US smartphone sales improved, but remains relatively modest. Of 61.9 million total handsets sold, including feature phones, Nokia sold just 400,000 to US customers. Its Lumia smartphones sales growth was on the back of its Chinese and developing markets strategy, which the company is targeting with lower cost handsets. [via Engadget]