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Technology Stocks : Nokia (NOK) -- Ignore unavailable to you. Want to Upgrade?

To: pyslent who wrote (34474)	9/2/2013 1:02:33 AM
From: pyslent	Read Replies (1) \| Respond to of 34857

"SmartDevices had a gross margin of 21.1%, but benefited from a one time inventory related allowance of 20 EU. Net that out and GM for Smart Devices was 18.4%" Oops, sorry, my math was wrong-- Smart Devices had a gross margin of 19.4% in Q2 (net of non-recurring benefits). My point remains, it seems like Lumia should have substantially better margins than feature phones, but that's not actually the case.

To: pyslent who wrote (34474)	9/2/2013 8:01:37 AM
From: niceguy767	Read Replies (2) \| Respond to of 34857

You seem to be missing the major point: 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. Difficult to say what proportion of the overall mix that Lumia will need to achieve before D&S profitability is achieved, but I'd guess at 25%, NOK's D&S division will be very profitable, no matter the mix within Lumias. Obviously NOK's Lumias have hit the sweet spot with NL 520 and to construe that as any way negative is just plain wrong! By the way, the fast increasing 520 base puts in place a large potential jumping off platform for NOK's flagship products which are, at the same time as nl's 520 base is expanding, fanning out product wise and thereby providing a variety of flagship offerings for nl 520 users as well as non-W8 users.