Despite recent restructuring, Nokia has been able to get back on its feet
Nokia’s breakup as a solid company that it once was etched the minds of many that things wouldn’t work out as great now, even with Microsoft on its mending side. It seems fair to expect this considering the major restructuring which came after the company was acquired by Microsoft but surprisingly, the latest fiscal report for 2014 is a proof that the Finnish company isn’t dead yet. It also seems reasonable to say that Nokia’s popularity right now has got nothing to do with its affiliation with the software giant, because the company was quite popular on its own too. And this explains why the Lumia brand, which is completely under Microsoft, has done exceptionally well.
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In the aftermath of this big acquisition, the operational costs as well as the sales numbers continued to rise and the report shows that in Q4 2014, Nokia managed to achieve higher overall net sales over the same period in 2013 when Microsoft was nowhere in the picture. There is a 9 percent year over year change from 3 476 million net sales in Q4 2013 to 3 802 million in Q4 2014. This clearly shows the impressive 14% quarter over quarter rise and Nokia is clearly on its feet once again.
Much of this success can be attributed to Nokia Networks which gives a significant chunk in the income as a result of its operations being spread all over the world, particularly in Europe and Asia-Pacific. The operational profit increase is more than impressive with 28% overall growth from 2013 and an impressive 25% for Nokia networks in particular.
Besides the networking department, the other two have also been performing well. Nokia Technologies contributes a 23% yearly growth in net sales over 2013 but unfortunately a drop in the operating profits. HERE is also in pretty much the same situation with 15% yearly net sales increase and 20% drop in operating profits.
Here are Rajeev Suri’s (current CEO) comments on the report;
The power of the new Nokia could be seen in our fourth quarter results. All of our businesses delivered strong year-on-year net sales growth. Profitability was excellent in Nokia Networks, and we were particularly pleased with our net sales growth in North America and core networks. HERE continued its momentum in the automotive segment, and the early reception to the Nokia N1 tablet has been remarkably favorable, showing the ongoing power of the Nokia brand and the long-term potential of our brand licensing business. Looking ahead, while 2014 was a year of reinvention, we see 2015 as a year of execution.
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