Shipments of Nokia's (NOK) Lumia Said to Be Good, But Could Be Better...

June 8, 2012 9:56 AM EDT
Nokia (NYSE: NOK) shares are trading higher Friday following a report which is surprising bullish on its current Windows Phone offering.

According to research firm IDC, Nokia may have shipped as many as 2.2 million Lumia smartphones in the first-quarter ended March 31st. As a reminder, these are just shipment numbers, not actual sales figures from retailers like Amazon (Nasdaq: AMZN), Best Buy (NYSE: BBY) and others.

Shipment numbers also don't include a full quarter of Nokia's latest 4G offering, Lumia 900, which began shipping within the first-quarter, but didn't begin selling until April. That device, available on AT&T's (NYSE: T) network, is priced at $99.99 with a 2-year contract. Microsoft (Nasdaq: MSFT) and Nokia have said the ad campaign behind the Lumia 900 is well above that made for Apple's (Nasdaq: AAPL) iPhone.

By comparison, Apple reported selling about 35 million iPhones in its latest quarter.

Though Nokia's number seems small in comparison, there are a few key points:
  1. The Lumia is new, having just been released at the end of 2011;
  2. Windows doesn't have quite the environment that Apple iOS and Google (Nasdaq: GOOG) Android-based devices enjoy;
  3. The Lumia is available in fewer markets;
  4. The Lumia is carried only on a handful of carriers (AT&T and T-Mobile, as far as we know); and
  5. Windows 8 is coming out in the second-half of 2012, meaning some customers might be waiting to switch over until the transition is complete.
No excuses, Nokia definitely needs to start selling more smartphones, as its first-quarter numbers would indicate. But, should the Lumia 900 catch on in the states and the next-generation of offering appear more appealing with a fully-integrated Windows 8 environment, who knows how many consumers will be Android-weary by then...and looking for a fresh change.

Shares of Nokia are up 3.5 percent in morning trade.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Corporate News, Insiders' Blog

Related Entities


Add Your Comment