Nokia is back on track

After two years of cost cutting and product improvements Nokia has reported profit for the first time in 1.5 years. Strategy being flagship of Microsoft Windows Phone has started to pay off. Sales grew by 11%, 4.4 Lumias were sold last quarter and sale price was on average 33% higher, grossing more revenue.

60% of new Windows Phone buyers are former iPhone and Android users

I have written previously that based on the trend setup by t-mobile's Lumia 710 sales the most likely buyers of Windows Phone will be segment new to smart phones, former feature phone owners.

However, recent poll shows that only 15% of buyers are former feature phones owners. Most of the new buyers of Windows Phone are past iPhone and Android users, 30% each. People are leaving iPhone and Android for Windows phone

Nokia and AT&T will attempt to defy iPhone’s paradigm

Carriers who sell iPhone have love/hate relationship with Apple. Revenue per user (ARPU) from iPhone customers is higher than other phones, but device subsidies and other costs are also higher. Apple dictatorial ‘my way or highway’ of doing business gets under their skin. Apple has gutted mobile value chain disproportionally shifting profits. While number of iPhones sold increases - carriers margins keep dropping.

AT&T, the iPhone beachhead, is trying to shake things up by partnering with Nokia on the launch of flagship Lumia 900. Nokia is desperate to retake US market after being irrelevant for the last 7 years and has excellent product to show at low price. Nokia has gotten its foot in the door already with more affordable Lumia 710 on T-Mobile network. The device, which has been free with contract has attracted a lot of new smart phone buyers and sold better than Samsung Galaxy S II.

Nokia and AT&T will throw extraordinary resources to ensure the success of Lumia 900. First, Nokia ensured their Lumia 900 was the most talked about product during the CES in Las Vegas. Now AT&T is going to follow the suit. Cnet quoted AT&T device head Jeff Bradley “At all levels, this is a notch above anything we've ever done" , noting that includes the launch of the iPhone.

Nokia Lumia phones off to a good start

This is one of the very few reports available on how Nokia Lumia phone sales are performing since after the launch in November 2011. Reports vary from 800,000 to 2 million phones sold from November to the New Year show strong demand.