Since Nokia’s Devices and services division already belongs to Microsoft now, so here you go with the Q1 2014 results for the division. Things don’t look rosy and both mobile phones and smartphones vloumes have seen decline. This is inline with the trend identified by Kantar’s report which has shown decline in Windows Phone share in Europe. Though, Q1 is seasonally a weak quarter in terms of device sales, but Microsoft has a tough task ahead on their hands.
Here are the details,
The year-on-year and sequential declines in discontinued operations net sales in the first quarter 2014 were primarily due to lower Mobile Phones net sales and, to a lesser extent, lower Smart Devices net sales.
On both a year-on-year and sequential basis, our Mobile Phones net sales were affected by competitive industry dynamics, including intense smartphone competition at increasingly lower price points and intense competition at the low end of our product portfolio. Our Smart Devices net sales were affected by competitive industry dynamics including the strong momentum of competing smartphone platforms.
On both a year-on-year and sequential basis, discontinued operations unit volumes declined in the first quarter 2014. The year-on-year decline in discontinued operations unit volumes was due to lower Mobile Phones unit volumes, partially offset by higher Smart Devices unit volumes. Sequentially, the decline in discontinued operations unit volumes was primarily due to lower Mobile Phones unit volumes and, to a lesser extent, lower Smart Devices unit volumes.
Discontinued operations Average Selling Price (ASP) declined on both a year-on-year and sequential basis in the first quarter 2014. The year-on-year and sequential declines in discontinued operations ASP were due to lower ASPs for both Smart Devices and Mobile Phones.
Discontinued operations ended the first quarter 2014 within our normal 4 to 6 week channel inventory range.
