Nokia today announced its Q1 2013 results, reporting an uptick in its Lumia shipments and a positive outlook for Lumia smartphones in the forthcoming quarter. The former number one cellphone vendor shipped 5.6 million Lumia smartphones in the quarter, an increase of 27 percent quarter-on-quarter. The company also shipped 5 million Asha full-touch phones that it considers smartphones as well as 0.5 million Symbian smartphones, bringing the total smartphone shipments to 11.1 million units. The company also shipped 55.8 million feature phones, a decrease of 30 percent quarter-on-quarter.
Increase in Nokia’s Lumia shipments is certainly a positive sign for the company that is trying to make its way back and can be accounted to the introduction of new Lumia smartphones during the quarter including the Lumia 520, Lumia 620 and Lumia 720. However, the decline in feature phone shipments indicate stiff competition in the $100-$150 segment, where Nokia’s phones compete with rival entry-level smartphones. Nokia will have to find out a way to either have more competitive Asha phones in that segment or somehow get a Windows Phone smartphone at that price point, which looks very unlikely at the moment. Asha shipments have gone down by almost 50 percent sequentially, which should be a worrying factor for the company. Nokia has bet big on Asha to take on entry-level smartphones.
“We have areas where we are making progress, and areas where we are further increasing the focus. For example, people are responding positively to the Lumia portfolio, and our volumes are increasing quarter over quarter. Nokia Siemens Networks delivered another strong quarter and contributed to an overall improvement in Nokia Group’s cash position. On the other hand, our Mobile Phones business faces a difficult competitive environment, and we are taking tactical actions and bringing new innovation to market to address our challenges,” Stephen Elop, CEO, Nokia said in a statement.