Remember the days when Nokia cell phones gave the owner a sense of prestige? Before the days of the smartphone, Nokia ruled the cell phone marketplace. Those days may be coming back, at least in part, thanks to Nokia’s partnership with Microsoft. Though Nokia still doesn’t hold the same sway over the consumer that they may have held in the early 2000’s, their choice to partner with Microsoft and to push the new Windows 8 operating system has definitely shaken things up.
Nokia’s shares enjoyed a large boost, due to sales from their Lumia smartphone. Partnering with Microsoft has proven to be a sound decision, as it appears that the Lumia has received a massive benefit from Microsoft’s recent marketing campaign for the Windows Phone.
This large success was apparently a surprise to the company. Back in October, they had predicted that they would have a loss. The operating margin for the fourth quarter 2012 had been forecast to be approximately negative 6 percent. However, estimates of the fourth quarter 2012 turned out to be closer to between breakeven and positive 2 percent.
Perhaps Nokia did not anticipate exactly how successful Microsoft’s advertising efforts would be for the Windows Phone. Whatever was the case, Nokia must certainly be pleased with their decision to work with Microsoft, as the clear results are in, and the Lumia is a winner.
The sales numbers of the devices tell the story. Third quarter sales from the Lumias were at 2.9 million. Sales of the devices jumped from that number to 4.4 million units in the fourth quarter. That is a huge increase by any standards.
Nokia was quick to dispel any ideas or hopes that their successful fourth quarter may be repeated in the first quarter of 2013. Though a repeat performance may not be in order, Nokia must be looking forward to their future, as this partnership spells potential for further development.