) rallied more than 18 percent Thursday after
that the company expects its Devices & Services business to
exceed expectations and achieve underlying profitability in the
fourth quarter of 2012. The Lumia creator currently estimates that
it sold 4.4 million Lumia devices in the quarter. This is a small
but significant boost for Microsoft's (NASDAQ:
) Windows Phone platform, which aims to overtake Research In
) BlackBerry as the third most popular mobile OS. Google's (NASDAQ:
) Android and Apple's (NASDAQ:
) iOS are expected to hold on to first and second place.
In total, Nokia said that it believes it sold 86.3 million units
in the fourth quarter. Nearly 10 million Asha "full touch
smartphones" were estimated to have been sold, along with 2.2
million Symbian smartphones.
Nokia said that its operating expenses were lower than
anticipated. The company expects its Devices & Services
non-IFRS operating margin to be between break even and positive two
However, the company also revealed that "seasonality and
competitive environment" are expected to have a "negative impact"
on the firm's Q1 2013 results.
If investors were turned off by that last tidbit, they certainly
didn't show it. This could be because they were too distracted by
the estimate that Nokia Siemens Networks has also exceeded
expectations for the fourth quarter, "delivering record underlying
profits and a third consecutive quarter of underlying
profitability." Nokia Siemens Networks is expected to report a
non-IFRS operating margin between 13 and 15 percent.
Not surprisingly, the company said that seasonality is expected
to have a negative impact on Nokia Siemens Networks in 2013 during
the first quarter.
"We are pleased that Q4 2012 was a solid quarter where we
exceeded expectations and delivered underlying profitability in
Devices & Services and record underlying profitability in Nokia
Siemens Networks," Nokia CEO Stephen Elop said in a
. "We focused on our priorities and as a result we sold a total of
14 million Asha smartphones and Lumia smartphones while managing
our costs efficiently, and Nokia Siemens Networks delivered yet
another very good quarter."
Earlier this week Nokia announced that it had
teamed up with Avanade
to deliver packaged Windows Phone 8 devices, applications and
services to large enterprise customers.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice.
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