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Nokia Stock Still Looks Better Than BlackBerry

BlackBerry (BBRY) just posted a surprise quarterly loss on disappointing device sales, sending the stock into single digits and down 50% from its January highs.

In other disappointing smartphone news, Nokia (NOK) missed revenue and saw handset volumes plunge 27% in its recent earnings report. NOK stock is trading down significantly this morning as a result.

Both stocks have underperformed in 2013, and are hardly safe bets amid the dominance of Android smartphones powered by Google (GOOG) or the ever-popular iPhone from Apple (AAPL) that is rumored to be launching a new iPhone line soon.

But there might be a crazy case to be made for Nokia stock — even despite the disappointing earnings lately and the dividend cut earlier in the year.

That’s because Nokia earnings showed sales of its Lumia smartphone hit a record 7.4 million. Now Nokia is just doing hardware here, in partnership with the Windows Phone operating system from Microsoft (MSFT), and thus those sales don’t pack the same punch as iPhone sales do. However, tech site The Verge overlaid these sales vs. shipments of BlackBerry devices for the same period and got a shocking result — that the Lumia seems to have overtaken BBRY gadgets.

Check out their chart.

Nokia earnings show Lumia beats BlackBerry

It’s hard for BBRY to make excuses about its numbers, though CEO Thorsten Heins has been trying real hard. Consider the new line of BlackBerry smartphones made up just 40% of quarterly sales despite several months since a highly touted launch for the gadgets.

But even as Nokia misses estimates, it’s important to note that at least the sales of Lumia devices are moving in the right direction.

Furthermore, while Nokia isn’t exactly financially secure, its partnership with Microsoft — and of course, the boost to the balance sheet after the dividend suspension — should ensure the company sticks around. Rich Uncle Softee has proven more than willing to prop up ailing partners, as evidenced by the Dell (DELL) stake worth about $2 billion that it plans to take.

BlackBerry is pretty much on its own, losing money and seeing sales slide.

This is not to say that BlackBerry will go bankrupt tomorrow or that Nokia will ultimately win. But it’s pretty interesting … and may hint at the potential for a bargain buy in Nokia stock if this momentum continues.

Related Reading

Jeff Reeves is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.

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Comments
  • Brian

    Do people do ANY RESEARCH anymore? Christ, look Jeff how can you make a reasonable comparison to sales of BBRY last Q to NOK? Lumia out FULL Q. BBRY had z10 out in markets for 2/3 of Q, and no Q10 in US (the flagship phone, you know that at least right???).

    Regardless of what you think please stop basing your articles about facts (or have no relevance in using as comparisons/benchmarks) that are not true in an effort to mislead investors.

    Thanks.

    • theflew

      Doesn’t matter since The Verge chart shows Nokia’s Lumia line outselling all Blackberry’s (BB7 and BB10) devices. The picture is much bleaker if you only look at BB10 devices. This is one of the reason BB is releasing another BB7 device. They have nothing to compete in the under $400 price range with BB10. The problem with that is it sends a mixed message to app developers and buyers.

      • Brian

        No it completely matters. Lumia is new and fresh, so is Q10 for people who want it. To compare, without Q10, is baseless and you can infer nothing from it.

    • Arun Lobo

      In the US, Nokia got 500,000 sales. Subtract that, and we still have 6.9 vs something less than 6.8. Nokia still wins.

  • sidarius

    That black lumia at the top looks very tempting….

  • hofjac

    “Nokia Stock Still Looks Better Than BlackBerry”

    What the hell….. What’s next, my junk is better than your junk.

    Geez, get a life

  • cinnamonchic

    Blackberry Z10 is the best phone out there. (Apple & Andriod, Windows..ah)

    HERE COME THE CONSPIRACY:

    1. Did anyone be me notice that Blackberry is the only competitor with out a Search Engine Company???

    a. Apple = Safari.
    b. Android= Google
    c.Windows=Bing/Yahoo
    It does help BB if all 3 blocks support of your device. Especially when the #1 Search Engine (if that what Google call itself still) blocks all BB support including Gmail.

    2. Why Im smarter than BlackBerry CEO… “when you read stories on Google search (lol) saying people are returning your products But there is no data or err…not flooding EBAY/Craigslist. You’ve got a PR problem.

    2b. When professional writers review your products with no CONS. but rate it 5/10. You’ve got a PR problem.

    Blackberry Problem is it a Canada Company. This company has no “rachet” DNA and cannot fight.

    Apple is an American co and can fight. It fought China, It fought off Google’s heavy promotion of Android. It fought off Adobe Flash ie Youtube videos, ie online porn is only in Flash issues.

    Blackberry stock is worth about $9.00 today & keep tankin’ because they hired 2 idiot CEO in a row. Holla at me if you need a new CEO (no joking)

    NO SKYPE ..smh

  • Brandon Glasser

    I see you forgot to mention how most sales were on the 520 and their ASP took a huge fall…not to mention that one of your arguments is that bb10 was only 40% of blackberry’s overall sales yet what % of nokia’s sales was the lumina? Oh looks like 8.2% of their sales are from luminas…I can see how the 40% looks horrible…