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Nokia Posts Loss, But Sees Windows-Based Lumia Sales Top 1 Million

 & Chloe Albanesius Executive Editor, News

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Nokia confirmed Thursday that it has sold more than 1 million Lumia devices since their late 2011 debut, but the company still posted deep losses for the fourth quarter.

The company has "sold well over 1 million Lumia devices to date," though it did not break out sales numbers for different versions of the phone.

The Lumia line is part of Nokia's deal with Microsoft to produce Windows Phone-based devices. The first gadgets, the Lumia 800 and 710, made their debut at Nokia World in October for the international market.

The low-cost Lumia 710 was announced for the U.S. in December and made its debut on Jan. 11. It's a medium-sized, slab-style cell phone with cropped corners and a curved back. Below the 3.7-inch, 800-by-480 LCD screen there's a large physical button, while a 5-megapixel camera records 720p video on the soft-touch back. Earlier this month, Walmart was offering the Lumia 710 for free with a two-year T-Mobile contract.

Nokia's first high-end Windows Phone device in the states will be the Nokia 900, which was unveiled at CES and will reportedly hit stores in March. It features a 4.3-inch, AMOLED Clear Black display, the largest screen on a Lumia device so far, a 1.4-GHz processor, and a 1830 mAh battery.

Nokia said today that it will bring Lumia devices to additional markets in the first half of this year, including China and Latin America.

In terms of the deal with Microsoft, meanwhile, Nokia said that Redmond handed over a quarterly "support payment" of $250 million during the fourth quarter.

"We have a competitive software royalty structure, which includes minimum software royalty commitments," Nokia said. "Over the life of the agreement, both the platform support payments and the minimum software royalty commitments are expected to measure in the billions of U.S. Dollars."

That payment, however, was not enough to help Nokia's 2011 numbers. The company lost about $1.5 billion during the year, while fourth-quarter earnings dropped about 73 percent from the previous year.

Nokia sold 93.9 million mobile phones in the fourth quarter, down from 95 million the year before.

"This was primarily driven by our reduced portfolio of higher priced mobile phones compared to the fourth quarter 2010, almost entirely offset by a portfolio renewal, such as the broad availability of dual SIM devices, and higher volumes at lower price points in the fourth quarter 2011," Nokia said.

The Microsoft deal is viewed as a way for Windows Phone to finally get a foothold in a marketplace currently dominated by Android and Apple's iPhone. And while the Lumia sales numbers were better than expected, they still pale in comparison to the 37.04 million iPhones that Apple sold during the fourth quarter.

For more, see PCMag's hands on with the Lumia 710 and the Lumia 900 and the slideshow below.

About Our Expert

Chloe Albanesius

Chloe Albanesius

Executive Editor, News

My Experience

I started out covering tech policy in DC for The National Journal, where my beat included state-level tech news and all the congressional hearings and FCC meetings I could handle. I later covered Wall Street trading tech before switching gears to consumer tech. I now lead PCMag's news coverage.

My Areas of Expertise

Getting my start in DC means I still have a soft spot for tech policy; Congressional hearings can sometimes be as entertaining as a Bravo reality show, for better or worse. But PCMag is all about the technology we use every day, as well as keeping an eye out for the trends that will shape the industry in the years ahead (or flop on arrival). I've covered the rise of social media, the iOS vs. Android wars, the cord-cutting revolution that's now left us with hefty streaming bills, and the effort to stuff artificial intelligence into every product you could imagine. This job has taken me to CES in Vegas (one too many times), IFA in Berlin, and MWC in Barcelona. I also drove a Tesla 1,000 miles out west as part of our Best Mobile Networks project. Of late, my focus is on our hard-working team of reporters at PCMag, guiding and editing their robust coverage.

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