Nokia today announced its second quarter results with an encouraging 7.4 million Lumia smartphones shipped during the quarter, a 32 percent increase quarter-on-quarter. The increased shipments can be attributed to the success of its entry-level Lumia smartphones, especially the Lumia 520. As a result the average selling price of Nokia’s smartphones decreased from Euro 191 to Euro 157 quarter-to-quarter with an increased mix of lower priced Lumia smartphones. Also Read - International Yoga Day 2021: 5 Best Yoga apps to improve flexibility, reduce stress
The mobile phone business continues to be weak with shipments falling further to 53.7 million units from 55.8 million units, representing a drop of 4 percent. The year-on-year drop continues to be alarming at 27 percent. However, things should start looking up for the division as the Asha 501 makes its way to major markets in this quarter. Also Read - Disney Pixar Filter: How to get and use the 3D cartoon face filter on Snapchat, Instagram, TikTok
“While we are very encouraged by the consumer response to our innovations in this price category, our Mobile Phones business unit is planning to take actions to focus its product offering and improve product competitiveness,” Nokia said in a statement. Also Read - Happy Father's Day 2021: Last-minute gift ideas if you have forgotten to get a present for your dad
The mobile phone business continues to be a tricky segment with Android smartphones now available at $75. The challenge for Nokia would be to bring the prices of its full-touch Asha devices in the coming couple of quarters. We expect Nokia to launch a 3G variant of the Asha 501 in this quarter but the pricing would remain a big challenge for the company for the product to remain competitive, especially with white-label Android smartphones in the $150 segment being quite competitive.
Overall, Nokia ended the quarter with Euro 4.1 billion in net cash, which is quite comforting. But net sales has declined in most regions, especially in Greater China.