After two years of teetering on the brink, Nokia has finally experienced a sharp upswing in sales of its smartphones.
On Thursday, Stephen A. Elop, Nokia’s new chief executive, delivered the great news that Nokia finally made a profit on the back of strong sales of its Windows Phone 8 smartphones.
According to preliminary estimates, sales of the Nokia Lumia line rose by more than 50% in the fourth quarter of 2012.
The Lumia 820 and 920 are the fruit of a special partnership between Microsoft and Nokia, who decided to abandon their old Symbian OS and cast their lot with Windows Phone 8.
This is interesting to remember that Nokia’s phones were once market leaders, but were swept away by the iPhone and later, the Samsung Galaxy S3.
However, Mr. Elop now says that Nokia will make a 2% profit instead of the expected loss of 10%. The New York Times reports;
Wall Street reacted to the announcement by sending Nokia’s American depositary receipts up 18.67 percent, or 70 cents, to $4.45.
“While we definitely experienced some tough challenges in the first half of 2012, we are managing through these issues,” Mr. Elop said in a conference call with journalists.
The Lumia’s new projected share of the smartphone market – 6% according to analysts, still pales in comparison to the over 50% joint dominance of iOS and Android phones.
However, this is a glimmer of hope that Microsoft sorely needed and Redmond may now see a path for continued success by Nokia and other Windows Phone 8 smartphone vendors.
What do you think of Nokia’s success? Is it sustainable?