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Nokia’s Q2 North American Handset Units, Dollars Down

Espoo, Finland – Nokia’s North American handset sales dropped in dollars in the second quarter, reversing a second-quarter and full-year 2012 gain.

North American handset dollar volume dropped 4 percent year-over-year to 123 million Euros $161.2 million) on a steeper unit-sales drop of 17 percent to 500,000 units. Sequentially, however, unit sales were up 25 percent, and dollar sales were up 22 percent.

In the first quarter, North American handset dollar volume was up 9 percent year-over-year to 101 million Euros ($132.4 million) despite a 33 percent unit-sales decline to 400,000.

In 2012, handset revenues in North America grew 28 percent to 453 million Euros ($593.6 million).

Despite the second-quarter unit and dollar declines, Nokia’s second-quarter North American performance was a relative bright spot for the company, whose handset dollar sales fell at a faster rate in the company’s five other global regions and whose unit sales fell faster in all other regions but one.

On a global basis, device unit volume fell 27 percent to 61.1 million units, and global device revenues fell 32 percent to 2.72 billion Euros ($3.57 billion). Nokia expects third-quarter device revenues to rise on a sequential basis.

Within the device segment, smart-device unit volume fell 27 percent to around 7.4 million units, accounting for the discontinuation of Symbian OS smartphones, but smart-device unit sales were up 21 percent on sequential basis. All of the quarter’s unit sales came from Windows 8-based Lumia smartphones, and their sales of around 7.4 million were the highest of any quarter to date since Lumia’s global launch in the fourth quarter of 2011, the company said.

Smart-device dollar volume fell 24 percent to 1.2 million Euros ($1.53 billion) compared to the year-ago period and were flat on a sequential basis.

Sales of all other phones, consisting of feature phones and full-touch low-cost Asha-series smartphones, fell 39 percent in dollars to 1.41 billion euros ($1.84 billion) and 27 percent in units to 53.7 million.

Global device revenues fell 32 percent to 2.72 billion Euros ($3.57 billion) year-over-year but only by 6 percent quarter-over-quarter.

Global operating losses in the device segment shrank dramatically in the quarter to 33 million Euros ($43.2 million) compared to a year-ago loss of 473 million euros and fell sequentially from the first quarter’s 42 million Euro loss.

Nokia’s consolidated revenues, which include wireless infrastructure and GPS mapping, fell 24 percent to 5.7 billion Euros ($7.5 billion) compared to the year-ago period and were down 3 percent on a sequential basis.

Consolidated second quarter operating losses shrank to 115 million Euros from a year-ago 824 million Euros and first-quarter loss of 150 million Euros.

For the half, consolidated sales were down 22 percent to 11.6 billion Euros ($15.1 billion), and consolidated losses shrank to 617 million Euros ($808.5 million) from a year-ago 3.1 billion Euros.

Currency conversion was calculated at a rate of $1.31 to the Euro.