Nokia Corporation (
Q4 2011 Earnings Conference Call
January 26, 2012 8:00 AM ET
Matt Shimao – Head, Investor Relations
Stephen Elop – President and CEO
Timo Ihamuotila – Executive Vice President & Chief Financial Officer.
Stuart Jeffrey – Nomura
Tim Long – Bank of Montreal
Gareth Jenkins – UBS
Mark Sue – RBC Capital Markets
Kulbinder Garcha – Credit Suisse
Pierre Ferragu – Bernstein
Jeff Kvaal – Barclays Capital
Sandeep Deshpande – JP Morgan
Francois Meunier – Morgan Stanley
Ittai Kidron – Oppenheimer
Previous Statements by NOK
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Good morning. My name is Dennis and I will be your conference operator today. At this time, I would like to welcome everyone to the Nokia fourth quarter and full year 2011 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. (Operator instructions)
I will now turn the call over to Mr. Matt Shimao, Head of Investor Relations. Sir, you may begin.
Ladies and gentlemen, welcome to Nokia’s fourth quarter 2011 conference call. I’m Matt Shimao, Head of Nokia Investor Relations. Stephen Elop, President and CEO of Nokia, and Timo Ihamuotila, CFO of Nokia, are here in Espoo with me today.
During this call, we will be making forward-looking statements regarding the future business and financial performance of Nokia and its industry. These statements are predictions that involve risks and uncertainties. Actual results may therefore differ materially from the results we currently expect. Factors that could cause such differences can be both external, such as general, economic and industry conditions, as well as internal operating factors. We have identified these in more detail on pages 12 through 39 of our 2010 20-F and in our quarterly results press release issued today.
Please note that our quarterly results press release, the complete interim report with tables, and the presentation on our website include non-IFRS results information in addition to the reported results information. Our complete interim report with tables available on our website includes a detailed explanation of the content of the non-IFRS information and the reconciliation between the non-IFRS and the reported information.
With that, Stephen, over to you.
Thank you, ladies and gentlemen, for joining us today for the Q4 2011 earnings call. The fourth quarter of 2011 marked a significant step in Nokia's transformation. As I have shared in my previous remarks, a transaction of the magnitude on which we have embarked is significant.
And while we progressed in the right direction in 2011, we still have a tremendous amount to accomplish in 2012 in order to properly position Nokia for sustainable long-term growth. We are now in the heart of our transaction. Most notably, in Q4 we introduced new mobile phones and smartphones, further evidence of the strategy shift in our Devices & Services business.
Overall, we are pleased with the performance of our mobile phones business, which benefited in Q4 from sequential double-digit percentage growth in our dual SIM business, with particular strength in India, Middle East and Africa, and Southeast Asia. In October, we introduced the Asha 200, 201, 300 and 303, which brought new mobile phones into 76 markets around the world. We are very pleased with the net promoter scores for Asha and consumers are responding positively to Asha’s great data capabilities, elegant design and value for money.
The operator channel also is responding positively to Asha, as the devices are bridging the gap between smartphones and feature phones. Because consumers are using their Asha devices for data and Internet, these devices are garnering a higher level of subsidy support from operators compared to traditional feature phones. Additionally, we have reached an important milestone in our mobile phones business. Quite recently, we sold our 1.5 billionth Series 40 device. Furthermore, we are building on this foundation with R&D investments as we continue our journey to bring the Internet to the next billion.
Shifting now to our Smart Devices business. In October, just six months after signing an agreement with Microsoft, we introduced our first two devices based on the Windows Phone platform, the Lumia 800 and the 710. We brought the Lumia 800 and 710 to market ahead of schedule, demonstrating that we are changing the clock speed of Nokia. To date, we have introduced Lumia to consumers in a number of European countries. We have also expanded the Lumia reach to Hong Kong, India, Russia, Singapore, Taiwan and South Korea.
We have also started our important re-entry into the North American market. Earlier this month, T-Mobile started selling the Lumia 710, and they are targeting the 150 million Americans still to make the transaction to smartphones. The Lumia 800 will also arrive in Microsoft retail and online stores in February. And starting in February, we expect to launch the Lumia 710 with Rogers and the 800 with TELUS to bring the Lumia experience to Canada.
And of course, we announced the new Lumia 900 for the US market in an exclusive partnership with AT&T. It is our third Lumia device and our first LTE device. Designed for the North American market, we expect the Lumia 900 to be available in the months ahead. The early reviews of the Lumia 900 have garnered an exceptionally positive pre-sales reception.
We introduced the Lumia 900 at the Consumer Electronics Show in Las Vegas where the new device was recognized with 13 awards from leading publications and technology associations. The awards range from Best of Show to CES Product of the Future to Top Gadget of CES 2012. While there are many challenges ahead, launching into the United States with the most recognized product at CES is a good starting point. And we won’t stop there. We plan to bring the Lumia series to additional markets, including China and Latin America, this half.