Silver lining for Nokia : Rise in sale

lining-for-NokiaSome good news for Nokia today: the company announced that it is exceeding guidance for Q4 sales after a strong quarter of sales for its Windows Phone Lumia line and its Asha low-cost smartphones, with sales of Lumias nearly doubling over last quarter to 4.4 million devices. It also noted that its operating expenses are also lower and that the two combined are helping improve the company’s operating margins. These are now expected to be between break even and positive 2%. This is significant in that it is a big change from previous quarters, where Nokia has had to warn the market that it wouldn’t be meeting original forecasts.

According to the company, 86 million devices were sold in the last three months of the last year including nearly 4.5 million Lumia smartphones. The revenue to the company was about €3.9 billion ($5.17 billion) while the company posted a net loss of €1 billion in the same quarter, a year earlier.

The company sold 15.9 million smartphones in the quarter that is up from 6.3 million in the previous quarter. Nokia sold 16.7 million smartphones in the Q2 2011 and the recent figure shows almost the same number of sale of phone handsets after two years of dusk.

The uptick in smartphone sales didn’t come as a complete surprise. Supplies of the flagship Nokia Lumia 920 began to run low as early as late November on AT&T and Amazon.com’s websites.

But Nokia is being cautious about the holiday results and warned investors not to expect the same type of results in the first quarter of 2013.

“Seasonality and competitive environment are expected to have a negative impact on the first quarter 2013, underlying profitability for devices and services, compared to the fourth quarter 2012,” Nokia said in a statement sent Thursday.