Nokia Mobile hasn’t had a good last year as far as the sales and revenue are concerned, as per the reports, but the company has a different narrative. Nokia claims that it is profitable since June 2020, thanks to the lowest operating loss since 2018.
In an interview, HMD Global’s Chief Executive Officer Florian Seiche said that the firm has sold 55 million mobile phones in the year 2020 and adds that the company has been profitable since June 2020.
However, revenue for the brand declined to EUR 1.2 billion in 2020 from EUR 1.7 billion the previous year, i.e. 2019. The brand still managed to be profitable thanks to the significant decline in the operating loss.
Nokia’s operating loss for 2020 stands at EUR 47 million, far lower than the 295 million in 2019 and 188 million in 2018.
As for the smartphone shipments, data from Counterpoint Research reveals that HMD Global sold only 1.7 million phones in Q1 2020, which further declined in Q2 2020 to 1.4 million units. But its shipments recovered in Q3 2020 to 2.1 million and 2.8 million in Q4.
The profitability of the Nokia brand for smartphones, as claimed by HMD Global, could be due to the high margin in 4G feature phones introduced by the company in emerging markets like India, among others.
Florian Seiche adds that currently the global shortage of chips is affecting deliveries of the Nokia smartphones but he clarifies that the problem is not related to the demand for the devices but on the operational side.
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