Saturday, July 14, 2012

Lumia Phone Sales in Q2 Still Not That Good

Every company is now calculating their Q2 2012 financial and Nokia is going to release their's on July 19th. These numbers will determine the state which Nokia is in and whether it is a good choice by boarding the Windows Phone ship. Nielsen released its latest estimates for the second quarter of 2012. The results don't look good for Nokia and despite Nokia’s exclusive focus on Windows Phone with its Lumia series of phones, the company still hasn't caught up in WP devices market share with Samsung and HTC. The two other companies have been selling WP devices since the debut of the platform and have some sales accumulated from back then. Still, all those numbers aren't that big at all - while Samsung and HTC Windows Phones held 0.5% of the smartphone market, Nokia accounted for 0.3% by the end of Q2 2012 in the US. Let's flip back to the start of Q2 2012, Nokia launched the Lumia 900 and is exclusively available on at&t. Many analysts predict that the Lumia 900 will surpass half a million devices since Nokia executives boldly refers the Lumia phones a the first real windows phone. Also at some point at&t commented at the sales of the Lumia 900 saying that i has exceeded their expectations. However in latest Nielsen and comScore numbers show that nokia sold a mere 330,000 Windows Phones which is not only Lumia 900 sales but also other Nokia Windows Phone devices. So its either that nokia's expectation were low or consumers just won't change. So how did Asymco get those numbers? Nielsen and comScore gave them to us: in the breakdown of hardware vendors Nielsen shows Nokia as behind Samsung and HTC’s Windows Phone offerings (despite not being “real” WP7 devices…) as having made 0.3% of all current U.S. smartphones. Multiple that against the total number of US smartphone owners (which comScore’s recently recorded as 110 million) and you get this:

110,000,000 X 0.003 = 330,000 units.


With existing Windows Phone 7 devices not upgradeable to Windows Phone 8, sales have obviously dropped. In at&t the Lumia 900 is no longer in second place for sales and is replaced by the HTC One X and the Lumia 900 is also expected to go even further down since it is not upgradeable to Windows Phone 8 and the recent launch of the Samsung Galaxy S III. The first place is still the iPhone 4s though. Q3 2012 doesn't look very bright for Windows Phone devices as Windows Phone 8 will only come in October and sales might slow down as many consumers are patiently waiting for Windows Phone 8 handsets. Nokia in the other hand acts smartly by virtually stopping all manufacturing of WP7 handsets, but Windows Phone 8 is not yet out so there’s a certain time gap during which the company is just sitting idly in one of its toughest transformation periods. 
“Since current Nokia phones will only work on Windows 7, the OEMs have stopped supporting the phones. They are very close to stop manufacturing parts for the phones, with the anticipation that these phones will become entirely obsolete in three months. In the meantime, the new phones developed for Windows 8 are yet to start manufacturing. Without much funding budgeted for new product development, the whole company has been sitting somewhat idly waiting for business to start on with the release of Windows 8,” a Nokia Asia employee said. 
Nokia is also two of its four offices in China which is now the World's biggest phone market and dominated by Samsung and android phones. Additionally they have severely crippled their relationship with Asian carriers after stopping MeeGo and switching to Windows Phone. Nokia sales slumped 70% in Asia in the first quarter of 2012. 


Source: Phonearena and Phonearena and Phonearena 
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