"Lumias comprised about 15% of the volume mix in Q2 but provided almost 50% of the gross margin total. Obviously it's a very positive event for NOK when Lumias, be they nl 520 or other Lumias, are not only increasing in volume Q over Q, but also increasing in their proportion to the overall mix. "
To the extent that Lumia 520 is expanding the total gross margin dollars, I agree with you. We will see if this is actually happening in Q3, but I wouldn't count on it. In Q2, Lumia unit sales grew 27% or so from Q1, yet total smartphone revenue did not increase, nor did smartphone gross margin dollars. That does not help the profitablilty picture, and suggests the wrong kind of cannibalization is happening. Now Nokia's guidance specifies higher revenue for D&S, which is promising, but only half the picture. |
