Nokia posts Q1 2011 results, signs definitive agreement with Microsoft
Just like Apple yesterday, Nokia announced its financial results for the last quarter (Q1 2011).
The company reported net sales of €10.4 billion for the quarter – up 9% YoY, but down 18% sequentially.
Nokia’s net profit in Q1 2011 was €439 million – 10% less than in Q1 of last year, and a staggering 50% less than in the previous quarter (Q4 2010).
The total number of mobile devices sold by the Finnish company in Q1 2011 was 108.5 million units, up 1% YoY but down 12% sequentially. 24.2 million of those devices were smartphones – down 14% sequentially.
Nokia’s global smartphone market share is now only 26% – compared to 41% in Q1 2010, and 31% in the fourth quarter of 2010. I really don’t remember Nokia’s smartphone market share to be this low, ever.
If things go on like this, Apple will soon ship more smartphones than Nokia – the Cupertino company sold almost 19 million iPhones in the last quarter.
“Following a solid first quarter, we expect a more challenging second quarter. However, we are encouraged by our roadmap of mobile phones and Symbian smartphones, which we will ship through the balance of the year. We are fully focused on delivering the needed accountability, speed and results to positively drive our future financial performance,” declared Stephen Elop, Nokia’s CEO.
Apart from unveiling its financial results for Q1 2011, Nokia also announced that it has signed a “definitive agreement” with Microsoft for making and selling Windows Phone devices.
The two companies are reporting “significant progress on the development of the first Nokia products incorporating Windows Phone.”
Just like in February, when the Nokia – Microsoft partnership was first announced, Nokia doesn’t refer to Microsoft’s OS as being Windows Phone 7 – which makes me think the first Nokia Windows handsets won’t run the OS you’re seeing now on devices like the HTC HD7, Samsung Omnia 7, or LG Optimus 7.
Nokia’s aim is to introduce WP-based smartphones in 2012. We’ve recently heard that the company’s first Windows handsets would be the Nokia W7 and Nokia W8. Of course, we’ll have to wait and see if these are the final names or not.