Financial Results Are In: Nokia Is Down/Up, Samsung Is Way Up, Motorola Is Pretty Down

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27 Jan, 2012 12:43 pm

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A ton of financial results were announced today. We have a rundown of the results for Nokia, Samsung, and Motorola Mobility.

Nokia is Up/Down

Windows Phone may be the last horse out of the gates, but Nokia is leading the charge for Microsoft. Nokia announced their financial results today which are mixed, but leaning towards the positive. To date, Nokia has sold “well over 1 million” Lumia devices, which is pretty good for their first foray into Windows Phone. We’ve already mentioned before that Nokia has already taken almost half of the market share for 2nd-generation Windows Phones since the Lumia line launched. That’s the good news. The bad news is that despite their fledgling success in Windows Phone, Nokia still lost $1.2 billion USD in Q4 2011. Device shipments were down 29% from the previous year, and gross profit margins on said devices also dipped from 28.7% to 19.9%.

But ultimately things will probably be looking up for Nokia thanks to their migration to Windows Phone and their close partnership with Microsoft. Microsoft reportedly paid Nokia $250 million USD last quarter for “platform support payments” as part of their partnership deal with Nokia. And that’s not all. Supposedly billions more in such payments will continue to roll in:

Our broad strategic agreement with Microsoft includes platform support payments from Microsoft to us as well as software royalty payments from us to Microsoft. In the fourth quarter 2011, we received the first quarterly platform support payment of USD 250 million (EUR 180 million). We have a competitive software royalty structure, which includes minimum software royalty commitments. Over the life of the agreement, both the platform support payments and the minimum software royalty commitments are expected to measure in the billions of US Dollars.

Wow, nice work if you can get it. But this isn’t “wasted” money by any means. Rumors are that once the flagship Lumia 900 becomes available for AT&T, it will be $99 on-contract, a super low price that could kickstart Windows Phone adoption into higher gear. Will we see a revival of the ubiquitous Nokia phone in the US? Time will tell.

Samsung is Way Up

This can’t really be surprising to anyone who has even marginally paid attention to consumer electronics, especially Android smartphones and tablets. Samsung announced their financial results also, declaring $42 billion USD in sales, primarily thanks to smartphone sales of over 300 million units last year. Smartphone sales accounted for around 40% of Samsung’s sales and half of their operating profit.

For the last quarter, they upped their operating profits to $4.7 billion USD, $1.8 billion more than the same time the previous year. But smartphones weren’t the only booming sales. Semiconductor sales garnered $2 billion in profit, and display panel sales — with LED TVs being the top product in the category — increased almost 20%, accounting for $7.6 billion USD.

Samsung is pretty confident about 2012 as well, with expected growth in mobile device sales continuing, thanks to LTE adoption, as well as new product categories (like the one they’re trying to forge with the Galaxy Note) taking root and flourishing. Smart TVs, another category on the rise, are also expected to boom (they seemed to be a pretty hot trend at CES 2012), along with regular HDTV sales, some of which can be contributed to major sports events like the London Olympics.

Motorola is Pretty Down

Even though Motorola Mobility seems to be doing alright with their Droid series of Android smartphones, like the popular DROID RAZR and brand-new DROID RAZR MAXX, their overall sales and profits are down. Motorola already warned that they expected Q4 of 2011 to be bad, and unfortunately their warnings were right.

Despite having a revenue of $3.4 billion USD, Motorola had a net loss of $80 million USD, whereas they had $80 million USD income during the same time the previous year. Smartphone shipments were up this year at 5.3 million units, compared to 4.9 million units the year previous. But number of shipments is kind of a vague statistic because units shipped doesn’t necessarily equal units sold. Their tablet shipment number is even more dismal at 200,000 units for last quarter (again, how many were sold?).

Motorola Mobility had a pretty bad year in total, with an operating loss of $70 million USD for Q4 2011. Total operating loss over all of 2011 is a crushing $285 million USD.

The deal for Google to purchase Motorola Mobility has not yet gone through. We’ll have to see if things look up for Motorola Mobility once it has.

Sources: Computerworld, Slashgear, Engadget, Moconews

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