Say What!? Windows Phone Out-Ships iPhone in These Countries

It appears that there are some countries, albeit just a handful, where Microsoft's (NASDAQ: MSFT  ) Windows Phone is out-shipping iPhones. Where in the heck this is happening?

According to The New York Times, Windows Phone shipments are higher than Apple's (NASDAQ: AAPL  ) iPhone in Argentina, India, Poland, Russia, South Africa and Ukraine. Earlier this week, Microsoft published a blog post that stated "Windows Phone has reached 10 percent market share in a number of countries, and according to IDC's latest report, has shipped more than BlackBerry in 26 markets and more than iPhone in seven."


Source: Microsoft.

That seventh country actually turned out to be a collection of smaller regions, including Croatia, which IDC lumps all together, according to the Times.

Don't go pop the cork yet
This is good news for Microsoft, considering it's not easy to ship more phones than Apple. Part of the success for Windows Phones in these countries is due to the fact that many of the markets are Nokia's (NYSE: NOK  ) old stomping grounds and the company still has strong brand recognition in these areas.

One of the most interesting countries on the list of shipments is India, where experts estimate smartphone growth will hit 70% this year and where smartphones account for less than 10% of the mobile market. But investors should keep the fact that more Windows Phones shipped in India than iPhones in perspective. If we look at the current smartphone revenue share in India, Nokia only has 7.3%, and Samsung and Apple hold more than 54.4% combined.


Source: CNN.

Investors may remember Apple CEO Tim Cook's words from the company's latest earnings call where he said, "I love India, but I believe that Apple has some higher potential in the intermediate term in some other countries." Apple has set its sights on China rather than India right now, which may be part of the reason why the Windows Phone made some headway this past quarter.

Apple and Samsung have a commanding lead, at least in revenue market share, so it could be a while before the Windows Phone starts doing some serious damage against Apple in India, if at all. 

Small step for Microsoft, giant leap for Nokia 
Windows Phone shipments may have surpassed iPhones in a few countries this past quarter, but investors will need to see a few things before they get too excited. First off, Microsoft and Nokia need to see several quarters where they out-ship iPhones in other countries, not just one quarter. Second, the actual sales numbers need to be compared, not just shipment numbers. And finally, the companies need to show investors that the Windows Phone can compete in the larger markets like Europe, the U.S., and China.

It's good to see the Windows Phone making some headway in a few countries, considering Nokia's future is banked on the platform, but positive shipment numbers in one quarter won't be enough to sustain the company.

This latest shipment news may be more evidence that Apple's losing some of its smartphone grip, or it could just be a temporary lull. Either way, there's no doubt that Apple is at the center of technology's largest revolution ever. But there's a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst has prepared a special report on both reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and your portfolio) going forward. To get instant access simply click here now.


Read/Post Comments (9) | Recommend This Article (7)

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  • Report this Comment On March 28, 2013, at 8:55 PM, alboy5 wrote:

    China will manufacture a $5.00 version of iphone called chiphone(maybe).

  • Report this Comment On March 28, 2013, at 9:43 PM, ctyank99 wrote:

    You Fools always find a way to put negative spin on GREAT NEWS! I believe Nokia's stock is a great buy right now. They've had mostly bad news of late and seem to be turning that around. This article is one example! I do truly believe they will thrive. The have an awesome line of phones with the Lumia, with a phone priced for just about everyone! They have the power and money of Microsoft behind them and should do very well with the business folks, it’s such a great fit. They have re-orged and are in transition and sales and stock price will climb as a result. I'm finally hearing some positive chatter about the Nokia Lumia's too! It's just beginning... to all the stockholders... keep your chins up :)

  • Report this Comment On March 28, 2013, at 11:29 PM, SimchaStein wrote:

    Fab article - unlike other Fool articles, you have real facts - now, if only the countries mattered. If only you provided a complete story. Was it sold to channel or end customer? How may quarters? or months are involved?

    What do we learn? Nothing - a typical fool article.

  • Report this Comment On March 29, 2013, at 12:16 AM, Same1234 wrote:

    Just for your information only!

    According to win8china.com report, on March 26, 2013, Nokia in China published Lumia 520 sale at a price of 1299 (RMB) and Lumia 720 at 2499 (RMB). China Unicom, and China Mobil will carry both models that will be available in April,2013. China Mobile may name Lumia 520T and Lumia 720T.

    http://bit.ly/10bpzuX

    China Mobile Variant Of Nokia Lumia 720 To Include CMMB Mobile TV Technology

    http://bit.ly/ZZNPm4

    As reported, according to the store website of JingDong Mall (京东商城) also known as 360BUY.com, Nokia Lumia 520 (WCDMA/GSM) exclusively debut there at 10:00am, on March 25th, 2013.

    Let’s take a look at Nokia Lumia 520 pre-order sales at JingDong Mall (京东商城) in China.

    It seems to me that JingDong Mall (京东商城) allocates certain quantities of Lumia 520 in 3 colors available (black, blue, yellow) to 4 different plans for a variety of consumers’ wide choices.

    Below are 4 plans

    1. Customers deposit 1399 (RMB) for monthly phone calling credit, and they get a free phone (预存1399元话费即可获得手机) and then they MUST go through the China Union 2-yr subsidized contract plan, 3G WCDMA network.

    The minimum monthly phone call spending requirements. Lumia 520 sale price is 1399 (RMB). For example, customers MUST spend monthly 96 (RMB) in a phone bill, and they will get one time activation bonus of 279 (RMB) and a monthly reimbursement of 46 (RMB). So the actual monthly phone bill is 50 (RMB), a total reimbursement for 2 years is 1383 (RMB), 1104 + 279 =1383 (RMB).

    2. Customers just pay cash in full, 1299 RMB, and get a phone. Without a contract. They may activate Lumia 520 in China Union, 3G WCDMA network or China Mobile GSM 2G network. Lumia 520 sale price is 1299 (RMB). No minimum monthly phone spending requirements. This group consumers just buy Lumia 520 phone for China Mobile network coverage GSM 2G network, otherwise they will go to plan3 much better deal in China Unicom, 3G WCDMA network.

    3. Customers just pay cash in full, 1299 RMB. Without a contract. If they decide to activate Lumia 520 in China Union, 3G WCDMA network, under this circumstance, customers must deposit 200 (RMB) and stay in the reimbursement plan for 2 years, and China Union will reimburse monthly phone expenses back to consumers based on their monthly phone spending, rules, policy, and a table of standard reimbursed expenses. For example, customers spend monthly 66 (RMB), and they get monthly reimbursement of 25 (RMB). So the actual monthly phone bill is 41 (RMB), a total reimbursement for 2 years is 600 (RMB). Not too bad for 200 RMB deposit.

    4. Customers deposit 1399 (RMB) for monthly phone calling credit, and they get a free phone (预存1399元话费即可获得手机) neither a contract, nor monthly minimum phone spending requirements.

    Let’s take a look at Nokia Lumia 520 pre-order sale at JingDong Mall (京东商城) in China (Link below). When you click the website below, you will see 18 units of Lumia 520 in 3 different colors displayed there because customers like certain colors and plans so that Lumia 520 sold out in round #1, and JingDong Mall (京东商城) put back round #2 pre-order sale again but certain color and plans sold out again.

    Keep in mind, there are 22 provinces + 4 municipalities + 5 Autonomous regions in China (NOT greater China which includes Taiwan, and 2 Special administrative regions - Hong Kong, and Macau).

    All Lumia 520 units will be distributed to pre-order customers in early April, 2013 based on pre-order number in sequence.

    So Lumia 520 revenue will be Q2, 2013 (by the end of June quarter) I guess.

    Unfortunately, the store website of JingDong Mall (京东商城) did not disclose how many units sold out in each color in each plan.

    Let me check pre-order sales of Lumia 520 in 4 provinces for your reference based on 3-28-2013 data.

    Black = BK, Yellow =YW, Blue =BL, Pre-order =PO, Sold out =SO, Round 1 =@1, Round 2 =@2

    For example, Black sold out at round 1, Pre-order at round 2,

    BK = SO@1,PO@2

    山东, Shandong province

    Plan #1,1399 (RMB),

    BK = SO@1, YW = SO@1, BL = SO@1

    Plan #2, 1299 (RMB),

    BK = @PO, YW = @PO, BL = SO@1

    Plan #3, 1299 (RMB),

    BK = SO @1, PO@2

    YW = SO@1, PO@2

    BL = SO @1, @2

    Plan #4, 1399 (RMB)

    BK = SO @1, @2

    YW = SO @1, @2

    BL = SO @1, @2

    辽宁, Liaoning, 吉林, Jilin, 黑龙江, Heilongjiang ( 3 provinces, each province has the same pre-order sale result, so put 3 provinces together)

    Plan #1,1399 (RMB),

    BK = SO@1, YW = SO@1, BL = SO@1

    Plan #2, 1299 (RMB),

    BK = @PO, YW = @PO, BL = SO@1

    Plan #3, 1299 (RMB),

    BK = SO @1, @2

    YW = SO @1, @2

    BL = SO @1, @2

    Plan #4, 1399 (RMB)

    BK = SO @1, @2

    YW = SO @1, @2

    BL = SO @1, @2

    Once again, it is neither a Nokia sale prediction nor a windows phone market share gain but shows that Nokia windows phone strategy is gradually working in China now.

    As we speak, Nokia may only gain a small portion of smartphone market share in U.S which is a stronghold for Apple and Samsung but China smartphone market share is a totally different ball game. Nokia will win back the smartphone market shares in China.

    As a growing, brand-recognition middle class in China expresses his / her opinion that Nokia has been selling excellent quality phones with a reasonable or less expensive price than its competitors such as Apple and Samsung smartphones in China.

    Nokia Lumia 520 at a sale price of 1299 (RMB) is the lowest windows phone 8 in the market now even it broke the previous record lowest price of 1499 (RMB) set by Huawei, Ascend W1 3G WCDMA/GSM in China.

    I am long NOK.

    http://bit.ly/105b91X

  • Report this Comment On March 29, 2013, at 7:53 PM, mariusfa wrote:

    " the companies need to show investors that the Windows Phone can compete in the larger markets like Europe, the U.S., and China."

    India has about 1,24B people. Bigger then U.s and E.U combined and

    Nokia har signed with China's largest carrier with about 700M subscribers. The phones will be subsidised unlike iPhone.

    Russia has 141M people and they will much rather buy a finnish Nokia than an Samsung or Apple device.

    Totaling the people of the six contries + the "collection of smaller regions" you have a market of about 2B people. Nokia goes to market with phones they can actualy afford in these parts of the world. Lower margin, but huge volumes. This is what nokia has been doing for 20 years i mobile phones. they screwed up with sticking to symbian for way to long, but they still make some great hardware.

    "Apple has set its sights on China rather than India right now, which may be part of the reason why the Windows Phone made some headway this past quarter"

    Or, it migth be because Nokia is actually offering phones at pricepoints that Indians can afford

    " but positive shipment numbers in one quarter won't be enough to sustain the company."

    NSN have returned to profitability. 5 Q in a row

    Patent portfolio is 600M annual cash flow(just started beeing monitized)

    "Navteq" is growing.

    Smart and dumb phones is keeping the company and the stock down.

    But if american analystst would understand that how the 920 is selling in U,S has little to do with the fate of this company, and start doing channel checks on Asha sales in India and lower end Lumia in South-east Asia maybe the stock could get some love=)

    But the patient investor will get paid if you buy NOK under 4$

    Long: NOK APPL

  • Report this Comment On March 30, 2013, at 2:48 AM, ctyank99 wrote:

    Boy, Wall St. Cheat Sheet, is out to get Nokia. Article after negative article!!!! I believe Nokia's stock is a great buy right now. They've had all bad news of late and seem to be turning that around I do truly believe they will thrive. The have an awesome line of phones with the Lumia line, with a phone priced for just about everyone! They have the power and money of Microsoft behind them and should do very well with the business folks, it’s such a great fit. They have re-orged and in transition and sales and stock price will climb as a result. I'm finally hearing some positive chatter about the Nokia Lumia's too! It's just beginning... to all the stockholders... keep your chins up :) I'm going to buy more...

  • Report this Comment On March 30, 2013, at 11:49 AM, Same1234 wrote:

    Just For Your Information Only!

    For long-term Nokia investors, pay a little attention to monthly 3G subscribers growth rate in 3 carriers in China , in particular, monthly China Mobile 3G subscribers growth rate compared to 2 smaller rivals, China Unicom, and China Telecom.

    China mobile continued to add net 3G subscribers in 3 consecutive months from Dec. 2012 to Feb. 2013 without carrying an Apple’s iPhone in its homegrown network 3G TD-SCDMA. Its monthly addition of net 3G subscribers outruns its two smaller competitors, China Unicom and China Telecom. Both carry an Apple iPhone in their networks.

    Below is China Mobile monthly operation data

    Dec., 2012, added net 3G subscribers 5.50 millions (a monthly growth rate of 6.67%)

    Jan., 2013 added net 3G subscribers 7.05 millions (a monthly growth rate of 8.02%)

    Feb., 2013 added net 3G subscribers 9.51 millions (a monthly growth rate of 10.01%)

    As of 2/28/2013, a total of 3G penetration is 14.50%

    China Mobile carries Nokia the high-end smart phone, Lumia 920T, in its homegrown network 3G TD-SCDMA since late Dec. 2012 . In addition, China Mobile will sell both the low-end Lumia 520T, and mid-range Lumia 720T smartphone in April, 2013. So China Mobile will have 3 WP8 models for every walk of life. In my opinion, Nokia will not only gain a smartphone market share but also dominate it in near future in China with the help of China Mobile’s net 3G subscribers increase month by month ( The monthly operation dada link below).

    http://bit.ly/15zHj6h

    Let’s take a hard look at the additions of net 3G subscribers in both China Unicom and China Telecom which carry an Apple iPhone in their network. However, Wall Street Analysts and many writers claimed that their 3G subscribers outnumber China Mobile because of Apple’s iPhone factor.

    But monthly operation data in both China Unicom, and China Telecom told not exactly the same stories.

    After Nokia and China Mobile signed a deal in Dec., 2012 in Canton, China, to carry a version of Nokia's flagship WP 8 handset, the Lumia 920T, that has been customized to the Chinese market. Surprisingly, China Mobile 3G subscribers growth rate outpaces its two smaller rivals.

    Below is the monthly operation data in China Union

    Dec., 2012, added net 3G subscribers 3.13 millions (a monthly growth rate of 4.27%)

    Jan., 2013 added net 3G subscribers 3.67 millions (a monthly growth rate of 4.80%)

    Feb., 2013 added net 3G subscribers 3.36 millions (a monthly growth rate of 4.20%)

    As of 2/28/2013, a total of 3G penetration is 33.92%

    The monthly operation dada link below

    http://bit.ly/13i85EL

    Below is the monthly operation data in China Telecom

    Dec., 2012, added net 3G subscribers 3.20 millions (a monthly growth rate of 4.86%)

    Jan., 2013 added net 3G subscribers 3.01 millions (a monthly growth rate of 4.36%)

    Feb., 2013 added net 3G subscribers 2.81 millions (a monthly growth rate of 3.90%)

    As of 2/28/2013, a total of 3G penetration is 45.30%

    The monthly operation dada link below

    http://bit.ly/15zHj6l

    Judging from above monthly operation data, China Mobile, without carrying an Apple’s iPhone, added 3G subscribers with a double-digit growth rate in Feb., 2013 while China Union and China Telecom 3G subscribers growth rate decreased from Jan., to Feb., 2013.

    Once again, it is neither a Nokia sale prediction nor a windows phone market share gain but shows that China Mobile will help Nokia windows phone strategy of gaining market shares gradually in China now.

    I am long NOK.

  • Report this Comment On March 30, 2013, at 12:04 PM, techy46 wrote:

    Nokia's next two quarters should tell the story for their Lumia phones and Windows Phones in general. Look for better results but it will still be a long haul for Windows Phone to get up to the 20% needed for the long term.

  • Report this Comment On March 31, 2013, at 2:02 AM, ctyank99 wrote:

    Winner of the year

    Lumia 920 is the winner of the Reader's Choice Smartphone of the Year in the Engadget Awards 2012.

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