Is Nokia’s Lumia DOA?

By Rauf Adil

Dissecting  Nokia’s resurrection and rejuvenation via Lumia Phone Sales

Nokia, the struggling Finnish maker of smart (and feature) phones issued a statement that it has shipped one million plus Lumia devices (that run on Windows Phone 7 platform). This has been incorrectly reported and talked about in the media as Nokia having sold anywhere between 1 to 1.3 million WP7 devices.

Nokia’s flagship WP7 devices: Lumia 710 (left) and the Lumia 810 (right)

Please pay attention here. The word is “shipped”, as in shipped to dsitributor, whoelseller, retailer etc. And this is for the period October 31, 2011 to January 10, 2011 (almost one quarter).

Here are some facts that should help separate the facts from fiction:

1. Nokia shipped approximately one million devices. Did not disclose exact figures. Research firms reported numbers as low as 900,000 and as high as 1.3 million.

2. These numbers do not represent the devices actually sold to or bought by the end customers or devices activated. Unlike Google, neither Nokia nor Microsoft disclose the actual devices activated (which is the only true representation of how many devices actually landed and are being used by end customer).

3. These numbers represent all Lumia models, from the low end Lumia 7100, mid market 8100 and high end Lumia 9100 (three handset models, comprising the Lumia series that runs on WP7).

4. This is for the  period October through January (representing approximately  70 days of  sales to the demand channel).

To put it in perspective, during the last quarter Apple sold 43.1 million iPhones, 65 million devices running Android (device activation rate at a mean of 7o0,000/day).

So, beyond generating some buzz and a positive spin, this news should be taken with a pinch of salt. After all, last year Microsoft also released a statement that they have shipped 2.4 million WP7 phones. Now, we know those handsets spent most of their time in warehouses and retailer store shelves and did not move into consumer hands.

Its still too early to write off Lumia handsets, but the initial numbers are certainly not encouraging especially if put in the light of competition: the number of Android and iPhone handsets shipped during the same period.

Comments
One Response to “Is Nokia’s Lumia DOA?”
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