Nokia's double digit growth today bodes well for the Windows Phone platform

Today Nokia reported its most recent quarterly results. Lumia volumes were up 19% sequentially, hitting a new record of 8.8 million shipments.  As Daniel pointed out earlier, these aren’t anywhere near iPhone volumes.  Apple shipped almost 38 million iPhones, or 4.3x more phone than Nokia Lumia this past quarter.  But that shouldn’t take away from Nokia’s accomplishment. They are single-handedly responsible for making Windows Phone a viable competitor in the marketplace.

Make no mistake, there is still a lot of work to be done, and we can only hope that the integration of the handset business with Microsoft goes smoothly, but Windows Phone stands a chance.  Anytime a platform posts double digit sequential growth in shipments we’re bound to see more developers take it seriously, not less.

The Lumia 520 steals the show

The launch of the Lumia 520 is credited, by Nokia, for helping bring the volumes up. After initially focusing much of its efforts on the high end of the market, it seems Nokia has realized that there is a ton of opportunity lower down. For those who have decided they don’t want to buy an Android phone, there isn’t a whole lot of choice at the low end.   Not too many people are interested in a legacy BlackBerry, which pretty much leaves you with Windows Phone as the only logical choice. 

Nokia has been given a free pass at this market driven by BlackBerry’s failure to go there.  Some might argue that the BlackBerry Q5 is a competitive entry level device powered by BlackBerry 10.  But I’d point out that most of the market wants pure touchscreen, not a physical keyboard.  Furthermore, Nokia Lumia average selling prices work out to US $197, which is significantly lower than any BlackBerry handset pricing estimates I’ve seen.  In other words, BlackBerry doesn’t even compete where Nokia competes, and their failure is Nokia’s (and soon Microsoft’s) opportunity.

Nokia stock today jumped on quarterly results

It won’t be long before Microsoft is running this business. Their biggest challenge, shared by BlackBerry, will be to develop a powerful app ecosystem for both phones and tablets. While Microsoft certainly has the cash to offer to developers to bring apps over, it doesn’t always work for the biggest names.  I had an interesting conversation with a serial technology startup CEO friend of mine in Silicon Valley who pointed out to me that a few hundred thousand bucks, which is all it really takes to build most apps, isn’t the real reason these developers won’t support a third place or fourth place platform.  It’s the commitment to ongoing maintenance that they aren’t interested in making (right now). 

Anyway, as things stand right now, Nokia has done a pretty good job of ramping up the Lumia (and therefore Windows Phone) user base.  If they can keep this up for the next year or so, I think they’ll be able to plug a lot of the app gaps, and be a real third place contender.

Nokia stock closed today at 7.45 a share (up +0.70 or 10.37%).

(Chris Umiastowski is a contributing financial writer to the Mobile Nations network. You can see the rest of his posts here at AndroidCentraliMore and CrackBerry.)


Reader comments

Nokia's double digit growth today bodes well for the Windows Phone platform


Att needs to stop that exclusivity nonsense. The sales would be even high if all carriers had the same WP, just like Samsung does.

It would be great if every phone wound up on every carrier. Coming from a Verizon customer, the selection is very bad beside the 928 which I have. They need to have all of em.

Won't happen.. The only reason Nokia is on ATT is because ATT let them have a piece of the customer pie at the price of them having exclusive rights.

And Nokia should offer a device on boost mobile a friend of mine loves my 1020 she has a crappy android on boost so if Nokia offered a Lumia device say the 520 or 620.
She said she would love a WP and get fid of her lockiing up junk from android.

Nokia done great job covering entry level market with 520.
Nokia is failing big time at top end market. Phones are either too big (1520), or screen too small (4.5' all), or chunky (920), massive bezel (all), overpriced (1020). Really, there isn't a single balanced phone that check all boxes (4.8-5' screen, HD display, slim body, no bezel, 20 mpx, extensible storage, sensible price point). Two years, still not a top-end phone to take on SG4/SG3 and latest LG/Motorola.
Are they ever going to learn or listen?

You pay the subsidy during your contract anyway so why not save the money, go with cheaper contract and buy an unlocked phone? I do it all the time (although I'm in EU) and I keep the phone for more than 5 years, no need for a new phone every two years. In the end I save huge money and have a phone of my own choice that I can use however I like.

There is no cheaper contract here if I go with Big Red or Ma Bell. They don't give you a better rate because you supplied your own phone.

Persistence gets rewarded in this market. Nokia has made significant inroads into the mindshare of people with their Lumia brand and this is starting to show in the market share.

Above We dont find any information regading the devices sold in the previous.

Here is a detailed piechart where Lumia 520 ranks No:1 with above 30% market share its really amazing.If you like  see the piechart here http://bit.do/dh4P

No developer wants to support ANY software. In this world of Agile and project-based IT, maintenance and support is less than an afterthought.

Thank you...! In Finland it is pronounced "Knock-E-Ah" .... I'm getting sick to death of this "No-Kia" nonsense from Americans...

:) I've always wondered about that! In official videos from Nokia, I've noticed the "knock-e-ah" pronunciation.

Nokia marketing here says No-Kia.  Whether or not it is the original pronunciation is irrelevant.  It is the correct pronunciation to use when talking about Nokia in America.

Thing is, sweetheart - just writing 'Nokia' doesn't give us any clues as to how you are pronouncing it.

I was thinking there isn't much point in getting upset over the way Americans say Nokia, as even though every other country in the world pronounces it differently to them they will probably never change... Then I remembered, they will all start pronouncing it differently soon... They will all be saying Mike-Roah-Softe

Exactly. Americans always want to be different and that'll never change. Look at how they pronounce aluminium. Yes, there is supposed to be an extra i.

Actually it was originally called Alumium, and then it was changed to Aluminum. Then later it was changed again to Aluminium as the ium ending conformed with the other elements (potassium etc). It was decided in the early 90s that Aluminium was the correct international spelling and only the Americas retain the older Aluminum, but it is considered an acceptable alternative spelling.  
Nokia on the other hand is just pronounced incorrectly in America for no reason at all, as its spelling doesn't invite the American pronounciation :-)

"and we can only hope that the integration of the handset business with Microsoft goes smoothly,"

And we can hope it doesn't. Actually, given the fact that Nokia's other divisions all reported loss, Nokia shareholders may want to rethink that stupid idea of selling out to Microsoft the division that still brings some money in.
Of course, being the author of the article who it is, one wouldn't expect him to say anything but to take for granted that Microsoft is all mighty and that Nokia has absolutely no relevance.
Well, I am starting to get tired of reading "opinions" coming 99% from Americans (and that's why I'm referring to americans and nothing else), that completely fail to see the power of Nokia just because Nokia was never powerful in the US, and believe that their disappearance will bring anything good to Microsoft. These American analysts are so smart that they completely underestimate the impact that the disappearance of Nokia as an independent brand will bring to Windows Phone just because they think there's no World outside the USA.
Very well.
Let the deal happen.
Then we'll see where those WP user numbers will be. My opinion? They'll end up in the same place they were with Windows Mobile.

I agree with the article in everything that doesn't concern these specific things that are perverted by a lack of understanding of Nokia as a brand, though.

"they'll end up in the same place they were with Windows Mobile"

Uh... A 33% market share? Yeah, that would be terrible wouldn't it?

Jas00555's Quote: "Uh... A 33% market share? Yeah, that would be terrible wouldn't it?"
Where did you pluck that number from mate, 33%, eh?
in U.S.
2004 11.3%[71]
2005 17%[71]
2006 37%[72]
2007 42%[72]
2008 27%[72]
2009 15%[72]
2010 7%[72]
2011 3%[72]

Hey mate, we live on Planet Earth not Planet USA. You guys have some real problems thinking outside the box.

Are you chatting to me mate (dotcompt)? If so, I'm frigging British and I put them figures up to prove how Windows Mobile peaked in 2007, and nose dived after. Which is backing up DJCBS comment about Windows Mobile. Furthermore, the figures suggest that Microsoft can't sell shite without OEM's -- put that in pipe and smoke it lol

7% mate, read my figures. Yes they were shite, and that is the point I was getting across to the comment regarding 33% -- totally irrelevant.

Clearly in 2006 is when they had 33% at one point (from an spreadsheet that I found). Now, I realize that the USA isn't the world, a lesson you should take, but even going from your graph, between 2005 and 2006, it hit 33%... Unless you think these results just jump from year to year? Anyway, even under your assumption that the USA is the world, you've helped my point by a) showing that at one point, yes, they did have a 33% market share and b) taking it further by showing that it had 42% at one point (something I didn't know) which goes on to further counter DJCBS's point (you thought those statistics helped him??) by his statement of "Microsoft shouldn't buy Nokia because it'll end up like Windows Mobile" implying that Windows Mobile had a low market share. I wasn't lying. Not every statistic shows the same result and just because something has a certain popularity in the USA doesn't mean the entire world has that.

Of course they did, are you blind mate? Microsoft started out with over 50 OEM's and if I remember rightly, by 2008 they only had one left (HTC), and that shows in the figures -- so yes, DJCBS comment regarding Microsoft losing the Nokia name might hurt sales, just like when OEM's left Windows Mobile for Android and they was left with only HTC, until Nokia came on board -- the article states Nokia have done well with WP8, which suggests they put WP8 on the U.S map. Furthermore, shite sales of first generation surface tablets kinda back that up -- you can try twist figures all you want, but stats can never give you the full picture, without trying find out the causes -- which I've tried to do.

So let me get this straight. You told me I was lying because they never had a 33% market share... Then start off your counter argument with "of course they did"? Ok...? My argument was that he was implying that Windows Mobile wasn't doing good at all when they were pretty high up there in market share (the reason why doesn't matter, it was never my point). My only argument was that at one point, they had a nice slice of the pie, which they did. Stop trying to start arguments that aren't there.

No, are you a lawyer by any chance, because you seem to like twisting shite? No mate, when I said "of course they did" I meant Windows Mobile had a low market share (U.S) from 2007, as it dropped like a dead dog.

Are you old because you seem to have Alzheimer's. Never once did I say something about their low market share, just that it was high at some point. What the hell were you responding to then if not my post about how they had a large market share at one time?

Once again, trying to twist shite -- are you a troll or smoking some high grade weed?

Where in my statement do you get I said, you said they had a low market share -- Jesus Christ, pmsl

Because you said "when I said 'of course they did' I meant Windows Mobile had a low market share" when I said nothing about low market share? The word low was literally not in my post.

Hello Jas00555,

Welcome to 2013.
33% of market share? I think you have an extra "3" in there. Unless of course you are referring to numbers of 2007 and prior? When there was no iPhone? No Android? No real smartphones as we know them, actually? Yeah. That's the thing. When you have almost no competition, it's easy to have a big market share.

If we go that route...Symbian had over 70% market share. When? In 2006. And then over time OEM's started to drop Symbian in favour of Android (like they dropped WM). Guess what'll happen IF Microsoft becomes the WP OEM? Do you really expect Samsung or HTC to keep producing them? Yeah, right.
HTC *may* be persuaded through the power of the All-Mighty-Money to keep releasing one or two Windows Phones. But Samsung? They'll drop it like it's hot. Why bother with an OS that was taken over by the creator of that very same OS, when they're thriving and dominating on an alternate OS?
It's exactly the same as if Apple would start allowing OEM's to put iOS on their devices. Some could at first do it...but soon they'd drop it. It's stupid to compete against the OS-designers. Unless you have an open-platform, like Android, that allows OEM's to actually compete with the OEM's offers. But Microsoft will very hardly turn WP into an open-source OS.

You said Windows MOBILE. Windows Mobile had, apparently, a 42% market share at one point. The 3% is windows PHONE. Completely different. Honesty, half the time I think you're just trolling.

Wow, pot calling kettle black, eh? You still arguing when the figures are in front of you, and worst thing is you have tried to twist everything I've said. Hence why I asked if you're lawyer -- blind fanboyism at it's best. I can't talk to people who always move goal posts, to win a debate -- unbelievable!

What the hell are you talking about ? My argument that I have repeated continually was that at one point, Windows Mobile had a large market share. That's it. That's all I've ever said. I've never talked about Windows Phone market share or OEMS or anything else. If being a lawyer means using facts to win an argument, then yes, I could be a lawyer.

Quote: "Anyway, even under your assumption that the USA is the world, you've helped my point by..." -- then show me proof that Windows Mobile had 33% market share (worldwide) in 2006, if not then stop trolling.

What?!?!? YOU showed proof right here in the comments. If it was 17% in 2005 and 37% in 2006, then it HAD TO HAVE BEEN 33% AT ONE POINT. What cocaine are you smoking? Market share numbers don't just jump instantaneously between years, they literally have to slowly grow. I can clearly see I'm dealing with either a stoner or a 10 year old, so unless you have something good to say, I bid you a good day.

If you think I smoke crack, then that's your business, but you do realise it's 2:30a.m here and I'm knackered mate -- you have really done my head with all your shite, end of the day market share plummeted to 3%, so your first comment about 33% was irrelevant (worldwide or USA). Good night

The marketshare you are reffering to is only US marketshare.
And though I agree that at some point it was definately 33% but only in US and it was when symbian was only its competetor, You would be dreaming if you expect WP to reach that stage.
WP is forever playing catchup and it not helping the marketshare that currently MS/Nokia priorities seem to be a market where they are still struggling and in markets where they had some success they have ignored those markets and now marketshare is falling in those markets.(search google or past WPcentral posts for teh reference :) )
The sales figures are going to be more or less remain the same as above, they'll only grow slowly and probably might expect a fall if they dont sort out their strategy. China & India are one of the biggest markets where WP has been making quite a progress becuase apple has not been able to crack the code and understand the dynamics of this market but we cant expect it to be forever like this, I'm happy that they messed up with 5C giving more breathing space but believe me if they launch a new phone under 400$ in these markets WP would be dead, you may see single digit sales back.

Am I the only one who hears Russell Brand while reading Dazzi's comments?

Also, Nokia was HUGE in the USA in the late 1990's. I'm not sure where the original commented got the idea that "...Nokia was never powerful in the US,".

They were the largest manufacturer in the world at one point and everyone looked at Nokia first in the US. Not all Americans are ignorant, btw.

Psml -- that comment made me laugh, and apparently Russell Brand smokes crack too mate -- Jas00555 has proper done my noggin in. Bedtime for me ha ha ha

We you are right just for this statement that "Nokia was HUGE in the USA in the late 1990's.", but in 2000s Nokia was almost wiped out of US despite being going strong in ROW and yes when Elop sent that burning platform mail, Symbian still had a very strong marketshare (though declining) but I think it could have cushioned Nokia's efforts towards android or even meego, but that email from elop was really a deathblow to symbian and the decline got accelerated.

@DJCBS "Well, I am starting to get tired of reading "opinions" coming 99% from Americans..."

Chris, the author of the article, is Canadian. He's also a BlackBerry user who doesn't use Microsoft products. He's also a financial writer for The Globe and Mail. He's hardly biased towards Microsoft (or Nokia), in fact, it's the opposite. 

I mean this with the deepest sincerity, but think a little more before posting here and making sweeping generalizations about people you don't know. Otherwise, you look foolish.

still it's most probably a fact that majority of wp users globally came from symbian becuse of nokia (looking at how shares moved from symbian to wp on some charts) even the much praised developer comunity wich gave us all those 3rd party apps... meego had a strong comunity.. i'd reckon a lot of them are the same people who supported nokia before and still do.. also the fact that most wp phones sold are nokias support that theory... the only question in my opinion is if this boost from nokia fans is going to give wp enough momentum to keep it growing, cause this is about as much as they could've helped.. now it's time for new consumers and new ways of keeping customers interested... but it leaves us to see if those nokia fans would stay with wp or go somewhere else after the deal closes and what actual impact would that make.. so it's definitely a turning point for better or for worse

I stand corrected regarding his nationality. However, I also pointed out that the reason I assume he's american was because these kinds of articles come 99% of the times from people in the USA. The article still reads a lack of comprehension about Nokia, anyway. That doesn't change.

"That doesn't change." Neither will the fact change that MS bought Nokia, and MS being a US company, their strategists are more connected to ground realities of US understandbly. 
I mostly agree with your views but not the tone, I agree that MS/Nokia's strategy in china / India which are the biggest mobile markets is flawed, they continuously screw up with pricing as well as the release dates. But they are learning, the launchh dates of 1020 & 925 were still close enough. ( they had really screwed up with 920 where the launch was very late and GS3 / GS4 took away all the glory). lumia 1020 which was launched about couple of months back in China has got its price dropped by almost 33% due to lack of space. WP still has some breathing space in these markets due to lack of domination by Apple here, Apple too screwed upp with 5C so thats a good news for MS but I dont think they can be too complacent as if ever apple brings out a sub 400$ phone to these markets WP will go back to its single digit marketshare.
my 2cents to you live with teh fact that the strategy is not going to change with MS being in control now more than ever with Nokia under their wings,

you can simply say that if somebody is tired he should retire :P why bother reading the comments get frustrated and reply.
fact is yes majority of posters in comments talk about US market and there's nothing wrong as you are not expected to know the ground realities of other markets, that said some ppl try to bring in views based on facts from other markets(including me) but its just the tone of the comments I believe which is the problem.
Also I think WPCentral editors should consider perspective of Asian markets when talking about strategies of MS/nokia about WP(I believe Europe is still covered under Rich).

The Microsoft buyout will help WP in that it will give them greater control over the carriers to stop exclusives and help updates rollout faster.

No but nexus phones get updates before any of them. That's what it will be like for WP after the Nokia buyout, MS phones will be nexus equivalents while HTC and Samsung phones will probably still depend on the carriers.

If Microsoft had any intention of having greater control over updates etc, they could simply stop sending carriers the updates and send them directly to our phones, just like they did with GDR3 preview.

Any buyout will not influence anything in that respect. OEM's will still do the exclusives the carriers ask and updates will still be going through the carriers. Microsoft becomes just an OEM, nothing else.

As for the exclusives...that's a US-thing. Only in the US do OEM's deliver carriers exclusively designed phones. Microsoft, being US-Centred as they are, will probably keep doing the same (the only OEM that doesn't abide by those rules is Apple, but they don't depend on anyone but consumers, unlike Microsoft)

I would imagine they are held to legal agreements allowing them to do this as standard policy. The GDR3 is a special developer program. While regular users can take advantage of it, its not the way GDR3 is being distributed to end users officially.

The carriers have control of what devices can be put on their networks. Apple can say let us send out updates direct, or you don't get the iPhone and the carriers will cave in. If Nokia says that, the carriers will just say "OK, no Nokia phones on our network then".

Its not Nokia or MS' decision.

Now I don't follow quarterly reports - I'm just watching the stock grow, but the last time I saw news from a report with earnings, it didn't say a word about the phone division earning anything. The losses had shrunk, but there was still a good climb ahead to break even.

And of course here is DJCBS with his hate filled rhetoric.  How I wish there was an "ignore user" funciton on here.  Or better yet just ban this jerk.  The worst was when he told Elop and Belfiorie to commit suicide.  More than one screw loose on this guy.

If you're accusing me of stuff, moron, at least get your facts straight. Now piss off. Also, you do know you can skip over my comments, right? Yet you make sure you always leave a comment. That's a sign of a pathological illness.

Believe me, I remember very well when you were advocating for them to commit suicide.  Let's just say it made a very strong impression, and casued your name to stick in my mind quite strongly.  That's why when I constantly see your crazy anti-merger posts I always am sure to remind people of the mindset of the source.  I have no problem with people having differing opinions, but people that make their case the way you do definitely get under my skin.
Why am I pathological when I resopnd to the nasty comments you leave on every Nokia story that mentions a Microsoft merger, while you are normal for leaving all the comments in the first place?  It would seem others are held to a completely different standard than yourself?  Strange.
Regardless, I will not be responding to your next reply, as I have made the point I intended.  Please feel free to continue your ravings.  Perhaps you would like to tell me to take my own life next?

Don't backout from your disgusting comment now DJCBS, you are a jerk who wishes death to people just like terrorists, you should have been banned by now.

Actually, NSN and HERE reported a Q3 profit, devices division a loss. Within devices feature phones made some profit, Lumias a significant loss.

Actually the devices divison was the one who made loss, because developing phones is expensive. The services division with HERE Maps etc. made profit. So after Microsoft deal Nokia will do better than before. Maybe not as much revenue but no loss anymore. And Microsoft is big enough to swallow that loss for another year, till glory Windows Phone rises above iOS.

I'm doing what I can to help WP grow. I've been sending polite tweets to companies I use requesting an official app where there is already an ios and android app.

I'm doing the same. What we should do is hit up the same companies at the same time as I very rarely get a reply and when I do its not at this time.

I've been doing this as well. We do need to get together and every day of the week have a company we hammer with WP app requests.

I'd like to nominate Anquet mapping as one such company. I've spent a fortune on (Android) maps and PC software only to switch mobile phone OS and lose it all. :'(

Also, by the end of the year it's estimated that there will be about 70 million Windows Phones in use, and around 240 million iPhones. That's almost 1/3rd! (There will be 708m Android devices, but a majority are likely cheap/free crappy things from years ago, and as people drop those, they're more likely to switch to iPhone or Windows Phone, as both are gaining more than Android.)

It's only going to get better for Windows Phone from here on out, ESPECIALLY now that a lot of big apps are coming to the platform, and many big apps have gotten refreshes recently. (Still waiting on Slacker Radio though, which is ridiculous because the teased refresh was way back in February.)

Hahaha... No, the refreshed version of the app teased on slacker.com/mobile, on the HTC 8X at the top. (At least, if it's still there like it was in February when every one of their apps was refreshed except the WP one.)
EDIT: Darn, I just checked the site. They JUST updated it with a 5S instead of the lineup of all the phones they support, including the teased WP refresh. I've emailed them and they're still working on it, they just can't give an ETA. :-/

Nice! Really stoked for Nokia. They have a good chance to really take over the budget to mid range market, as anyone who's ever used a budget Android will never use one again, and WP is smooth as butter at all price points!

Totally agree, I bought myself a Samsung galaxy mini, it was the biggest mistake I've ever made, I tried out the 520 after buying the 920, and the performance is almost exactly the same, its only noticeable in CPU intensive apps.

Omg me to my friend loves it I am going to keep promoting windows phone and telling my friends why not window makes the world a better place and improving it would only do us better!

I see the apps common on other platforms coming to WP, I see the blending of Windows, Xbox and WP bringing it all together into one cohesive monster, with Office being the big attraction along with Skydrive, Skype and Bing integration. Now that its coming together, the apps imbalance has to be eliminated as an excuse not to buy MS.

I can tell you that the Berkshire Hathaway company I work for is integrating Surface Pros into our ecosystem. They're not a majority but the people who want them, love them for the most part.

Windows Phone is getting better support than Windows 8. Windows 8 needs more store apps for the ecosystem to compete better. Then my surface 2 will have more value. Still a big app gap on Windows 8.

Lets hope MS can keep the train moving and not slow it down.  Something is working with Nokia devices, smart thing is to let the division to its thing and help improve the OS.  No more secrets so collaberation shoudl be there with no barriers. 
Let sjust hope things go well when this deal closes, sometimes corporate gets in the way.  Let them do their thing and help them along the way. 

I'm amazed at how U.S.A today bashed Nokia on these result and stated the completed opposite. They stated that the phone side of the business was causing NOkia to lose money and hasn't been gaining amy traction....very odd..

Now I'm a stockholder and happy about the jump with today's news, but which is it? The earlier article called the growth "mild" and this one says it bodes well.

The growth is irrelevant. The stock is priced based on what Nokia will be doing after the MS purchase of the devices unit. That other (networks and services) business is doing better and better, hence stock goes up.

Thank you Chris for telling this story of WP correctly. Double digit growth, not "mild increase" as I've read other bloggers tell this story.

The trick is how good Windows Phone is from 520 up to 1020 and soon 1520 and so on, they are all similar and brilliant with smoothness in the os at all price points, my brother now has 520, myself 1020 and i sold my sis my old 800 which is STILL a brilliant device, the 720 i upgraded from is only noticeably slower at some tasks when held side by side with my 1020, anyway go Nokia

What Chris is not telling you is that the stock reacted to the well-performing Nokia Networks business, with which the company now makes and will keep on making its money after the devices business has been sold to MS. Nokia investors do not think of Lumias or Nokia Ashas or feature phones any more. They are now irrelevant for the stock and the company. Of course.

It's incredible that Nokia is doing this well considering that the US market seems so aligned against Windows Phone. Imagine how much better they'd be doing if it weren't for the open hostility against WP amongst carriers and retailers.

ASP down by 12€ compared to Q2, loss per Lumia sold up by 3% (now 17.1% compared to 14.1% in Q2), yea Nokia is really doing well... If even Nokia has to sell the Lumias with a loss who expects any other company to invest into WP in the future?

Selling at a loss of a particular product and loss at a division level are somewhat different. Nokia still has had high legacy operating costs in the,devices division. Second, at the same time Nokia has (as Elop also,said) overinvested in WP as a whole. These factors are what are contributing to,the loss probably,more than the ASP drop per se.

That's good but MS/Nokia also needs to consider making a serious bid for Blackberry. They could use the marketshare for WP. Before it dwindle down to 0%.

Heh, not sure it makes sense buying dwindling market share. Better just grab it,with your own products. IP might be a different matter.

Good news! My concerns going forward are 1). Will WP lose brand identity when Nokias name is no longer on devices outside of US? 2). Will we ever penetrate deeper into US market?

Difficult but doable. The US market is not just a market, it is a culture(android and apple). However in every culture, fatigue usually sets in. What's cool today will no longer be cool tomorrow. Time for the non-conformists. Windowsphone will be the new cool.

This is the first time I see a company wants to sell itself when things are going up. People says because device and service still losing money is just silly excuse. Its just a few quarters away from profitable, and -200m a quarter?
Someone got give me a valid reason, please.

Not,sure but the end of the MS-Nokia deal in 2014 (ans thus end of the platform support payments and increased licensing fees) might mean it would take more than a few quarters.

Do you think there will be end of deal? Not going to happen, there will be another 5, 10 year deal. I can say for sure, even Nokia change mind now, they still get full support from Microsoft. I just think there is something not obvious, not what people have said. I don't know what that is.

Nokia's cash position after the NSN purchase isn't that great, you need money to pay your bills while waiting for the clients to pay the bills you sent them. Mobile phones are still doing okay, but are a dying breed, only rock bottom -priced Lumias are selling in numbers that their high-end should be selling.

The smartphone market itself is competetive and volatile, and even if they could potentially get smartphones to make profit by the end of 2014, the risks are great and the profits might not end up being that large in the end. 520 is not really low spec, and Android phones with similar specs will run quite smoothly as well, and it's not like Google won't work on that even more (MS will try to catch up on features, and Google will try to catch up on smoothness). They can't forever count on NSN having a great quarter every quarter.

Nokia has made it to be a house hold name.
Today as I was checking at the gym, and my phone rang. The front desk guy yells out "Hey, that's the new Nokia phone!"
I replied "Yes, indeed" and walk away.

Wish I had Nokia stock. But I would not have sold after the big boom in price when Microsoft announced the purchase. Its a goldmine.

Comparing results to Apple (or Android) isn't going to look good at all, but it's good to aim high. Compared with Blackberry shipments - Windows Phone looks REALLY good. I think we now have a solid third place in the OS envirnonment. Blackberry is irrelevant.

LUMIA 520 is sooo boss. that being said i hope to upgrade to a higher end WP at some point. Wish i had invested in nokia earlier when my gut told me too :(

It will be better,if Nokia buys windows phone division from Microsoft rather than the other way round. I don't just like the idea of Microsoft buying out Nokia devices units.

I think MSFT needs to stick with the Lumia name and branding. Release two phones, a Surface phone and a Lumia phone. Aim the surface phone at businesses and corporations and the Lumia phones at consumers. Keep the styling and feature sets different enough so that consumers have choice. The worst thing they can do is try and amalgamate both lines into something that nobody is familiar with.  Then it's going to be an uphill battle again to educate the public.
People are already starting to get familiar with the Surface, and they understand the Surface is geared towards productivity with the ability to also have fun on the side.  Lumia is all about fun and consumers.
Just my two cents.

Actually the report makes sense. Feature phone sales of Nokia have plunged. A mere 1.4 million jump in Lumia phones has not been able to offset the dip in feature phone sales, consequently sending Nokia's market share further down.

Nokia is doing whatever possible..but its the problem with the Microsoft..if they allow notification center and little customisation,smart dialing and control center like that of an iOS..WP8 will be unbeatable..but i donno why these basics are missing in WP..the culprit here is Microsoft