Nokia’s results are actually very good for the industry as a whole and indicate a success of the services strategy ..

The headlines make dire reading with Nokia’s results with profits down YOY on same quarter last year by 90% ..

But there is more to it ..

Nokia’s results are actually very good for the industry as a whole and indicate a success of the services strategy – and I am personally very optimistic about the services strategy (Ovi, deep integration of skype etc).

Now the customers seem to be accepting it as well as indicated by 5800 sales

Rafe does some great analysis at allaboutsymbian of Nokia results

Things which I noticed were from Rafe’s post

Nseries sales were very poor at 5 million units (down from 8 million in Q4); this takes total Nseries sales in the last year to 32 million. This reflects a weakness is Nokia’s Nseries portfolio and increasing competition from Apple, HTC, Samsung and LG.

• Nokia sold 2.6 million Nokia 5800 units. This takes total sales to 3 million. This reflects Nokia’s relative strength in the mid tier market for converged devices (open mobile platform devices). Overall numbered converged device sales were 5.7 million. It is worth noting that if you add the 5800 sales to the Nseries numbers the results are more in line with previous quarters and suggests that Nokia’s mid tier smartphones may be canabalising sales of Nseries phones.

• Nokia’s reduced sales and market share was primarily driven by economic conditions, which has resulted in weaker consumer and corporate spending and constrained credit availability. It is also worth noting that the sequential decline also reflect the traditional seasonal decline (usually around 10%).

Nokia noted that ‘extensive destocking by operators and distributors of their mobile device inventories adversely affected sales volumes by manufacturers, including Nokia, during the first quarter 2009′.

While its too early to say about Ovi, but 5800 should give Nokia an indicator. This comes at a very good time for Ovi when Ovi will be launching new media based services later this month with Tim Kring(creator of heroes TV series)

and ovi is being pitched as a media channel which just happens to have

an appstore

So, all this means that if the 5800 is an indicator the services strategy(which Ovi has) will work

Also, N97 on Skype being released later this year will add to the services portfolio

So, overall this development will be interesting and may be showing signs that their strategy is working(after being at it for about two years now!)

Also, Nokia gained 30.8% YOY in USA! USA results I think are due to the woes of Motorola.

But still, does not explain to me why their share should rise so much so far (i.e. I would have thought that LG and Samsung should have benefited from Moto woes in USA)