Nokia announces sales of two million Lumia devices in Q1, introduces Lumia 610 NFCAlex Wagner - Editorial Director of News and Content
Today Nokia played a game of "Good News, Bad News," shedding some light on Lumia sales figures but also lowering its first quarter 2012 outlook for its Devices & Services division. First, the good news: Nokia revealed that it sold over two million Lumia devices in Q1 2012, adding that it's seen a sequential growth in Lumia activations since the first models went on sale in November. The Finnish firm also said that there are now over 80,000 applications available to Windows Phone users.
Meanwhile, Nokia also revealed that several factors had a more of a negative effect on its Devices & Services business than the company previously expected. These factors include "competitive industry dynamics" that caused weaker net sales of Mobile Phones and Smart devices, particularly in India, the Middle East and China, and gross margin declines. As a result, Nokia has estimated that its operating margin for the Devices & Services business was around negative three percent, down from its previous "break even" estimate. Nokia says that Mobile Phone sales in Q1 2012 reached a total of 71 million, while Smart Devices sales for the quarter hit 12 million. The company also looked forward to Q2, saying that its operating margins for the second quarter is likely to be similar to the first.
In the last tidbit of Nokia news, the firm today announced the Lumia 610 NFC. As the name suggests, the handset is the Lumia 610 but with NFC technology and includes support for MasterCard PayPass as well as Via payWave. The Lumia 610 NFC will first hit European carrier Orange and is expected to be available early in the third quarter. No U.S. launch details have been announced.
So there's some of the latest news coming out of Nokia. Although it's disappointing that Nokia had a rougher than expected first quarter, it's good to hear that two million Lumias were sold in Q1. Now that the Lumia 900 is available on AT&T, it'll be interesting to see how Lumia sales figures look for Q2. Nokia also notes that it plans to increase investments in its Lumia line to bring more devices to more markets, so that's something to look forward to. How many of you currently own one of Nokia's Lumia handsets?