Nokia Corp Posts Stronger Demand for Lumia Smartphones in Third Quarter
Nokia Corp has reported a significant growth in sales of its Lumia smartphones in the third quarter. It could be an indication that the line of Nokia smartphones is becoming in-demand these days. However, many analysts think that Microsoft Corp would have a tough time taking the crown from the current leaders in the market segment.
Sales of Lumia phones increased 19% to 8.8 million units in the third quarter ending September compared to sales in the preceding quarter. This could be attributed to the introduction of several new models during the period as well as to the strong demand in the market particularly for its Lumia 520, which is considered as the cheapest Windows Phone from Nokia.
Including feature phones and other handsets other than smartphones, Nokia sold a total of 64.6 million mobile handsets in the quarter. That fell from 82.9 million mobile phones sold in the same quarter last year. However, it is good news that its sales of smartphones rose from 6.3 million units sold in third quarter last year. Out of its 8.8 million Lumia sales, about 1.4 million units were sold across North America alone.
Best sellers in smartphone market
In the smartphone market, Nokia’s Lumia phones would still have to struggle harder to even catch up with the sales of the market leaders. In comparison, Samsung Electronics’ Galaxy line of smartphones sold 88.4 million units in the third quarter while Apple Inc’s iPhone sold 33.8 million units in the same period.
Nokia may still not become the third best-selling vendor in the period. Standing on its way is China’s Huawei Technologies, which sold a total of 12.7 million smartphones. These figures are based on the quarterly data from research group Strategy Analytics.
During the third quarter, Nokia’s handset business was acquired by Microsoft for $5.2 billion. Shareholders in Nokia are set to vote on that deal in November. If they approve it, the transaction would be completed by the first quarter of 2014.
After overcoming shareholder and regulatory approvals for the deal, Microsoft could fully make Nokia’s handset operations its own. That would be significant in its drive to boost its Windows Phone line of devices. But Microsoft also has to implement strategies for brand alignment, structuring of Nokia handset operations, and level of autonomy. It would surely be a challenging but interesting integration process that the market would certainly monitor.