A new report claims that the full year 2020 was not good for Nokia Mobile as far as sales numbers and revenue are concerned. But, the company claims to be profitable since June 2020, resulting in the lowest operating loss ever since its inception in 2018.
Nokia Mobile aka HMD Global CEO revealed during an interview that the company sold a total of 55 million feature phones and smartphones in year 2020. He also claimed that they have been raking in profit since June 2020.
The revenue for Nokia Mobile declined to EUR 1.2 Billion in 2020 compared to EUR 1.7 Billion in 2019.
However, Nokia Mobile was able to significantly reduce its operating loss in 2020. The operating loss for the full year 2020 was EUR 47 million, while in 2019 it was still EUR 295 million and in 2018 it was EUR 188 million.
Data from analyst firm Counterpoint Research shows that the first half of 2020 was very difficult for HMD Global during the raging Coronavirus pandemic. In Q1 2020, it sold only 1.7million smartphones, plummeting to only 1.4 million smartphones in Q2, recovering to 2.1 million in Q3 and 2.8 million smartphones sold in Q4 2020.
So, there was a marked recovery in Nokia smartphone sales numbers in Q3 and Q4 2020. But, the profitability that the company is boasting of, may be due to the high margin 4G feature phones it introduced in markets like India and others. A recent report from analyst firm strategy analytics throws some light on how strong demand for these 4G feature phones led to double-digit revenue and margin growth.