Nokia’s phone-free future looks less bright

Nokia Earnings Q4 2013

Nokia reported its fourth-quarter results on Thursday morning — it’s final earnings report that will include a full quarter of results from its devices and services business. Nokia said its Q4 operating profit totaled $556 million on $4.77 billion in sales. Meanwhile its phone business lost about $270 million and Nokia said that unit sales of its Lumia smartphones declined in the fourth quarter, though the company failed to share shipment numbers.

UPDATE: Nokia confirmed during its earnings call that it sold 8.2 million Lumia phones in Q4, down from 8.8 million in the previous quarter.

Following the sale of its devices and services division to Microsoft for about $5 billion (the remaining $2.2 billion in the $7.2 billion deal represents a 10-year patent licensing deal), Nokia’s shining star will be its solutions and networks business. In the fourth quarter, however NSN sales plummeted 22% to $4.23 billion as operating profit took an even steeper 39% tumble to $476 million.

Operating margins for the NSN division rose sequentially to 11.2%, but that’s down from 14.4% in the year-ago quarter.

Source:
Nokia [PDF]
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