Nokia Australia's dramatic profit slide

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Nokia Australia's dramatic profit slide

Nokia Australia's revenue and profit fell significantly in 2013 during its last year of operation before Microsoft acquired the vendor's devices and services business, according to financial results released to ASIC this month.

Profit after income tax fell 62 percent for the year ending 31 December 2013 to $1.3 million, down from $3.5 million the year before.

Nokia Australia's consolidated revenue also fell last year, down to $128.7 million from $184.6 million the year before.

Last September, Microsoft announced plans to buy the devices and services business of Nokia, which was the predominant operations of Nokia Australia, according to its financial report.

The acquisition was completed on 25 April this year; Nokia Australia is now a subsidiary of Microsoft Mobile in FInland.

Microsoft and Nokia spokespeople did not comment when contacted by CRN.

Despite the major fall in revenue for Nokia Australia, Windows Phone OS has posted some gains in local market share. While sales are dwarfed by the likes of iOS and Android, Windows Phone OS nevertheless increased to 5 percent of the local consumer market in February 2014, according to Kantar Worldpanel ComTech.

Meanwhile, Nokia launched its first Lumia tablet in Australia in May with the Lumia 2520. Nokia also announced phones with Windows 8.1 this year, including the Lumia 930.

While Nokia Australia's financial results may not paint a rosy picture, integrators CRN spoke to last year said they were seeing encouraging signs of interest in Windows Phone in the enterprise market. They cited uptake of Microsoft Lync, integration with Microsoft systems and brand loyalty to Nokia as reasons for this.

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