Nokia have released their Q1 2014 report, with the headline figure of a €597 million loss. We also find out that Smartphone sales, under the heading of “Discontinued Operations” went down compared to last quarter (Q4 2013) from 8.1 million units, but is up Year on Year (Q1 2013) when Lumia sales alone were 5.6 million. Mobile phone sales also went down compared to last quarter.
You may have caught my earlier prediction of Lumia sales, which I thought may be 8.6 million. Well, we don’t yet know the exact figure, but we know I was incorrect in my guess, and actual sales are between 5.7 and 8 million.
On both a year-on-year and sequential basis, our Mobile Phones net sales were affected by competitive industry dynamics, including intense smartphone competition at increasingly lower price points and intense competition at the low end of our product portfolio. Our Smart Devices net sales were affected by competitive industry dynamics including the strong momentum of competing smartphone platforms.
On both a year-on-year and sequential basis, discontinued operations unit volumes declined in the first quarter 2014. The year-on-year decline in discontinued operations unit volumes was due to lower Mobile Phones unit volumes, partially offset by higher Smart Devices unit volumes. Sequentially, the decline in discontinued operations unit volumes was primarily due to lower Mobile Phones unit volumes and, to a lesser extent, lower Smart Devices unit volumes.
I know there is so much more to the report than just smartphone sales (which aren’t even included), but that area is of particular interest to myself and many others. And while we don’t have a figure yet, we may get one later, so will be keeping an eye out for that.
In terms of overall cash Nokia report the following:
Balance sheet highlights:
Nokia Group ended Q1 2014 with a strong balance sheet and solid cash position with gross cash of EUR 6.9 billion and net cash of EUR 2.1 billion compared to EUR 9.0 billion and EUR 2.3 billion, respectively, at the end of Q4 2013. The sequential decline in Nokia’s gross cash was primarily due to repayment of certain debt facilities totalling approximately EUR 1.8 billion during the first quarter 2014.
If the transaction to sell to Microsoft substantially all of our Devices & Services business would have closed before the end of the first quarter 2014, Nokia would have ended the quarter with gross cash of approximately EUR 10.5 billion and net cash of approximately EUR 7.1 billion.
You may want to take a look at the Interim report for yourself for more information on Nokia’s Q1 2014 performance, which you can do by Clicking HERE.
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