Re: Phones slumped 32%, In total an operating loss of €115m.
Phones slumped 32% because of the drop in feature phones. This has no relevance to the growth of Lumia.
Feature Phones net sales dropped 39% YoY, -12% QoQ.
However, Lumia net sales dropped 24% YoY/flat QoQ.
Lumia ASP is down 18%, with a margin that is negative 1.2%.
Lumia volume is up but net sales (income, which is what matters) is down thanks to an ASP in free-fall as Nokia has next to no high-end volume. Lumia is only really selling at the low-end (520, 620 etc.) where Nokia makes a loss on every sale.
The Lumia ASP is falling at a faster rate to head off landfill Android than any increased volume of sales can counteract.
Nokia needs to become more competitive at the high-end and achieve significantly higher ASP. Is the Lumia 1020 the device for this? If it's not, nothing else will be. We'll know soon enough in another 3 months.