Nokia Earnings - Business Insider

Nokia reported another terrible quarter of earnings this morning.

Independent analyst Horace Dediu of Asymco pointed out two interesting tid bits from the report.

1) "Nokia forecasts cash to drop below ?3bn by year end. Burn rate about ?0.5bn/Q. Implies two years to fume date. Debt not an option."

2) "Lumia sales/3 months = Android sales/3 days"

The first one is pretty bad, and pretty self-explanatory. The second one is worse, and probably deserves more explanation.

Nokia has bet its future on Windows Phones, which are sold under the Lumia brand. Last quarter, Nokia only sold 2.9 million Lumias. Google says it is activating over 1 million Android phones every day.?

Therefore Android is seeing as many activations in three days as Microsoft and Nokia are seeing from Windows Phones in three months. (Activations and sales are not perfect comparisons, but they give you a rough picture of the disparity between the two platforms.)

Part of the reason Lumia sales were weak is that Microsoft announced it is releasing Windows Phone 8 in the fourth quarter, thus making the last generation of Lumias worthless. Even taking that in to account, these sales are terrible.

We don't know how Nokia fixes this problem. Consumers have rejected Windows Phones.

Source: http://www.businessinsider.com/nokia-earnings-2012-10

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