Yesterday, Nokia posted their final financial results before the the Microsoft deal closes. Unfortunately, the part of Nokia being sold Microsoft doesn't seem to be in great shape. Nokia's recent traction with the Lumia range seems to have stalled as they announced a 7% sequential decline in unit sales. Let's take a brief look at the causes of the decline and what Microsoft is really buying.
The chart above shows Lumia shipments and ASPs for the past eight quarters. As we can see the Lumia's ASP has continued to decline as shipments grew. This reinforces the fact that the Lumia sales mix was dominated by low-end variants - primarily the Lumia 520. We need to keep this in mind while examining the cause of the Q4 decline in shipments.