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# Are Microsoft phones making inroads as Lumia has record smartphones sales?

Nokia sold 7.4 million Lumia smartphones in the second quarter, its best yet for sales of the Windows Phone devices, but still made a net loss.

Net sales totalled €5.70 billion ($7.48 billion), down 24 percent year-on-year. The company reported a net loss of €278 million, smaller than the year-earlier loss of €1.53 billion.

During the quarter, Nokia sold 7.4 million smart devices, its term for high-end smartphones, all of them Lumia devices running Windows Phone. That’s 27 percent down on the same period last year, when it sold 10.2 million smart devices: 4 million Lumias and 6.2 million older phones running the company’s now-abandoned Symbian OS. Sales of smart devices dropped more slowly by value, down 24 percent to €1.16 billion, buoyed by a 4 percent rise in average selling price.

Sales of what Nokia calls mobile phones—feature phones and more basic smartphones such as its Asha range—fell 39 percent in value, to €1.41 billion, hit by the same 27 percent fall in volume as smart devices but also a 16 percent drop in average selling price.

Nokia’s operating loss on devices and services has shrunk to €33 million from €473 million a year earlier. The company expects phone sales to pick up in the third quarter, but for operating profit to hover on the wrong side of break-even.

Sales at Nokia Siemens Networks, the network equipment company over which Nokia has now assumed full control, fell 17 percent year on year to €2.78 billion, with the division moving to an operating profit of €8 million from an operating loss of €226 million a year earlier. In the third quarter, Nokia forecasts that the division’s operating margin will rise to between 3 percent and 11 percent.

Nokia’s navigation and mapping division, Here, saw an 18 percent decline in sales, to €233 million, with an operating loss of €89 million, not quite as bad as the year-earlier operating loss of €95 million.

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Peter Sayer, IDG News Service

- Jul 18, 2013 4:55 AM
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### Peter Sayer, IDG News Service, IDG News Service

Peter Sayer covers open source software, European intellectual property legislation and general technology breaking news.
More by Peter Sayer, IDG News Service

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