The deal is sealed , no more doubts , no more ifs, buts. Windows phone will ship on Nokia devices and Nokia’s strongholds like Navigation, operator partnerships.. etc will be used in all Windows phone devices , thereby adding muscle to the “Third ecosystem”. And both parties have agreed to pay in the big B’s for each other’s contributions. For us users, the deal is : we may expect a Nokia Windows phone late 2011 , but definitely they ship in volumes in 2012. Apparently Nokia and Microsoft are working together right *now* on a portfolio of models with a 4 year timeframe, which is my guess , is the transition period from Symbian to Windows Phone.
Here’s a video of the deal’s summary ( Pretty boring, if you ask me ) :
Read on to find new details of the deal.
Some new points to note from the deal :
Nokia and Microsoft have now signed a definitive agreement on their strategic partnership to create Nokia devices using Windows Phone. Stephen described a number of details that reveal more about the nature of the new offering:
- Nokia will supply mapping and location-based services for the Windows Phone ecosystem, building on the success it’s experienced with Ovi Maps.
- Nokia and Microsoft will deliver a new, Nokia-branded application store, that combines the Windows Marketplace back-end with the convenience of operator-billing from Nokia – this billing method already extends to 112 operators in 36 markets.
- To drive the attractiveness of developing for Windows Phone, the Windows Phone developer registration fee – normally $99 – will be waived for the first year for all published Nokia developers.
- Concluding on the Windows Phone deal, Stephen said that, in recognition of the value that Nokia was bringing to the deal, Nokia would receive payments “totalling billions of dollars” over the next five years.
Now , for the Q1 results , click here to download PDF
Key take aways from the results : *facepalm* , *facepalm* and once again *facepalm*
Kidding aside , here are some real mathematical equivalents of *facepalm* 😛
- 24.2 Million smartphones. 13% more than last year.
- 84.3 Million “dumb” phones, 2% DOWN from last year (shift going to smartphones)
- 108.5 Million Nokia phones shipped. In 1 quarter.
- All down from last quarter, where Nokia alone sold 28.3 million smartphones.
FIRST QUARTER 2011 HIGHLIGHTS
- – Nokia net sales of EUR 10.4 billion in Q1 2011, up 9% year-on-year and down 18% sequentially (up 4% and down 18% at constant currency).
- – Devices & Services net sales of EUR 7.1 billion in Q1 2011, up 6% year-on-year and down 17% sequentially (up 1% and down 16% at constant currency).
- – Services net sales of EUR 211 million in Q1 2011, up 43% year-on-year and 5% sequentially; billings of EUR 338 million, up 48% year-on-year and down 4% sequentially.
- – Nokia total mobile device volumes of 108.5 million units in Q1 2011, up 1% year-on-year and down 12% sequentially.
- – Nokia converged mobile device (smartphone and mobile computer) volumes of 24.2 million units in Q1 2011, up 13% year-on-year and down 14% sequentially.
- – Nokia mobile device ASP (including services revenue) of EUR 65 in Q1 2011, up from EUR 62 in Q1 2010 and down from EUR 69 in Q4 2010.
- – Devices & Services gross margin of 29.1% in Q1 2011, down from 32.4% in Q1 2010 and 29.2% in Q4 2010.
- – Devices & Services non-IFRS operating margin of 9.8% in Q1 2011, down from 12.1% in Q1 2010 and 11.3% in Q4 2010.
- – NAVTEQ net sales of EUR 232 million in Q1 2011, up 23% year-on-year and down 25% sequentially (up 20% and down 26% at constant currency).
- – Nokia Siemens Networks net sales of EUR 3.2 billion in Q1 2011, up 17% year-on-year and down 20% sequentially (up 15% and down 21% at constant currency).
- – Nokia Siemens Networks non-IFRS operating margin of 0.1% in Q1 2011, down from 0.6% in Q1 2010 and 3.7% in Q4 2010.
- – Nokia operating cash flow of negative EUR 173 million and cash generated from operations of EUR 182 million in Q1 2011.
- – Total cash and other liquid assets of EUR 11.1 billion and net cash and other liquid assets of EUR 6.4 billion at the end of Q1 2011.
- – Nokia taxes continued to be unfavorably impacted by Nokia Siemens Networks taxes as no tax benefits are recognized for certain Nokia Siemens Networks deferred tax items. In Q1, this was partially offset by favorable profit mix both in Devices & Services and in Nokia Siemens Networks taxes. If Nokia’s estimated long-term tax rate of 26% had been applied, non-IFRS Nokia EPS would have been approximately 0.4 Euro cents higher in Q1 2011.
- – Nokia expects Devices & Services net sales to be between EUR 6.1 billion and EUR 6.6 billion in the second quarter 2011.
- – Nokia expects its non-IFRS operating margin in Devices & Services to be between 6% and 9% in the second quarter 2011.
- – Nokia targets its net sales in Devices & Services to be at approximately the same level in the third quarter 2011 as in the second quarter 2011, and targets its net sales in Devices & Services to be seasonally higher in the fourth quarter 2011, compared to the third quarter 2011.
- – Nokia targets its non-IFRS operating margin in Devices & Services to be between 6% and 9% in 2011.
- – Nokia targets to reduce Devices & Services’ non-IFRS operating expenses by EUR 1 billion for the full year 2013, compared to the full year 2010 Devices & Services non-IFRS operating expenses of EUR 5.65 billion.
- – Nokia and Nokia Siemens Networks expect Nokia Siemens Networks’ net sales to be between EUR 3.2 billion and EUR 3.5 billion in the second quarter 2011.
- – Nokia and Nokia Siemens Networks expect the non-IFRS operating margin in Nokia Siemens Networks to be between 1% and 4% in the second quarter 2011.
- – Nokia and Nokia Siemens Networks continue to target Nokia Siemens Networks net sales to grow faster than the market in 2011.
- – Nokia and Nokia Siemens Networks continue to target Nokia Siemens Networks non-IFRS operating margin to be above breakeven in 2011.
- – Nokia and Nokia Siemens Networks continue to target Nokia Siemens Networks to reduce its non-IFRS annualized operating expenses and production overheads by EUR 500 million by the end of 2011, compared to the end of 2009
- – All items relating to Nokia Siemens Networks exclude the impacts of the planned acquisition of Motorola Solutions’ network assets.