Beleaguered Nokia’s Q2 results a disaster and it’s due to get even worse

“Nokia unit sales of all smartphones fell from 11.9 million in Q1 to 10.2 million now in Q2. The decline is 14%. This while the industry is expected to grow this quarter. My preliminary market share for all Nokia smartphones is 6% now, down from 8% just three months ago,” Tomi Ahonen writes for Communties Dominate Brands.

“We heard right at the top of the Q2 results, that Nokia had shipped 4.0 million Lumia smartphones in Q2. While that is not the same as sales, lets not be picky, it is clearly doubling the sales of Lumia from Q1 when the level was 2 million,” Ahonen writes. “And so did we have a monster AT&T powered USA surge of Lumia? …No. The total Nokia USA handset sales in units last quarter (Q1) was 600,000 total handsets which was dumbphones and smartphones, and smartphones both on Symbian and Windows Phone (Lumia had launched on T-Mobile). Now how much more do we see in Q2? Try none. Yes, the total sales of handsets by Nokia in the USA, in Q2 was.. 600,000. The only thing the AT&T massive launch marketing blitz achieved, was some transfer of previous Nokia dumbphone and Symbian smartphone sales to Lumia. Even if somehow all Nokia dumbphone sales had ended, the absolute maximum Lumia sales in the USA would be that, 600,000. Not the millions many analysts were expecting when they ooh’d and aah’d over the Amazon sales rankings… this should put an end to the hype about AT&T PR people spinning the story that Lumia sales were somehow good. No they weren’t. Not unless you think Nokia’s recent Symbian and dumbphone sales in the USA have been ‘good.'”

Ahonen writes, “In Q2, we have 3.7 million lost Symbian sales in exchange with the 2 million gained Lumia buyers. That means that still Nokia is losing customers and the ‘exchange rate’ is 1.85 to 1. So yes, two customers walk in to a store, holding old Nokia Symbian smartphones. The sales people do their thing, and in almost half of the cases, the customer won’t take the Lumia, but goes to Android or iPhone or whatever rival smartphone they prefer over the Lumia… This is disaster… Needless to say, the fall [in smartphone market share] from 29% to 6% in 18 months is a world record in collapse of a market leader of any global industry leader, ever. Nokia has thrown away 4 out of every 5 loyal customers it held only a year and a half ago! Yes, we are witnessing history being made – history of the worst CEO of all time (and it will only get worse in Q3). Pay attention to this, this is the classic case study for MBA’s of the future to study how not to destroy your company, using methods like the Elop Effect.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Apple Fanbois” for the heads up.]

Related article:
Beleaguered Nokia moved 4 million Lumia phones, stock jumps most since 2001 – July 19, 2012

9 Comments

  1. It’s alright – I’m sure Elop is getting paid extremely well. He’ll be able to retire in luxury when this is all over, and it seems like he’s in a hurry.

  2. Everything Microsoft and it’s employees, current or former, touch turns to crap in a scatological Midas effect. Exporting Microsoft culture and approach to other companies does not appear to be a good idea though I hesitate to rush to judgment… NOT! This is an embarrassment of cruel chuckle riches. But Elop should definitely stay…. for as long as it takes.

  3. Not wise to announce a future Windows Phone 7 a year in advance and then EoL it after 4 months on the market. That sounds like a typical Miscrosoft business deal – MS partners are doomed.

  4. Why would any one buy the just released Nokia lumina? It’s ALREADY outdated, it will never update past windows 7.8

    It’s sad the 3 year old iPhones 3GS is still updated to the newest OS yet the 3 week old lumina came out the gate dead!

  5. Using a staggered release schedule to make it look like you are selling more is not an honest business method. When the press eventually works that out its all over for Nokia and Elop. Partnering with Microsoft and also having an ex Microsoft exec is not only asking for trouble its guaranteeing the worst trouble of the worst kind. Yes , this Q2 result is at best , the worst result possible. It shows that most buyers will not buy a windows phone regardless of Elop trying to blame the salespeople.

Add Your Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.