Nokia Q4 Financial Results: More Info On Nokia Lumia Windows Phone Devices
Nokia today reported its Q4 financial results and as expected they posted about half a billion of profit. Nokia sold over 4.4 million Lumia smartphones in Smart Devices category. North America was one of the reason behind higher Lumia sales where in Q4 2012 the numbers grew over 40% over the same quarter last year.
Average Selling price of smart device also increased due to sales of newly launched Lumia devices which had a higher ASP. The ASP of Lumia devices in the fourth quarter 2012 was EUR 192, compared to EUR160 in the third quarter 2012. The increase in Lumia ASPs was primarily due to a positive mix shift towards sales of newly launched Lumia devices which had a higher ASP.
Nokia also confirmed that during the Q4 2012 their Smart Devices volumes were affected by supply constraints as they ramped up their production capacity, particularly related to the Lumia 920, which have continued into the first quarter 2013.
Regarding quarterly platform support payment of USD 250 million from Microsoft,
Over the life of the agreement the total amount of the platform support payments is expected to slightly exceed the total amount of the minimum software royalty commitment payments. To date the amount of platform support payments received by Nokia has exceeded the amount of minimum royalty commitment payments to Microsoft. Thus for the remainder of the life of the agreement the total amount of the minimum software royalty commitment payments are expected to exceed the total amount of the platform support payments. In accordance with the terms of the agreement, the platform support payments and annual minimum software royalty commitment payments continue for a corresponding period of time.
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