Nokia posts big losses as smartphone sales dip

Nokia posts big losses as smartphone sales dip

Nokia posts disappointing results, with sales losses worse than analysts expected.

The decline of once great mobile giant Nokia continued today as it posted an operating profit decline of 41 per cent, year-on-year, and losses of $489 million.

In the second quarter of 2011, Nokia saw its smartphone sales drop 32 per cent, with overall mobile sales falling 20 per cent.

The company sold 16.7 smartphones in the quarter, compared to 25.2 million in the same period in 2010.

Net sales overall fell seven per cent, even as the company looks to make sweeping changes in order to reestablish itself as a contender in the market, where it is up against the likes of Apple, Samsung and Google.

Earlier this week, Apple beat market expectations in its quarterly results, largely thanks to significant iPhone sales. Apple sold 20.34 million iPhones during the quarter.

Nokia chief executive (CEO) Stephen Elop said the results were “clearly disappointing.”

“However, even within the quarter, I believe our actions to mitigate the impact of these challenges have started to have a positive impact on the underlying health of our business,” Elop said.

“Most importantly, we are making better-than-expected progress toward our strategic goals.”

The company has yet to release a Windows Phone 7 device, since announcing the move away from Symbian in February. One is expected to appear before the end of the year, but no date has been set.

“Those who already have viewed our early Windows Phone work are very optimistic about the devices Nokia will bring to market and about the long-term opportunities,” Elop said.

“Step by step, beginning this year, we plan to have a sequence of concentrated product launches in specific countries, systematically increasing the number of countries and launch partners.”

Gartner analyst Carolina Milanesi said the sales were much lower than she had anticipated, meaning Nokia could fall to the third biggest supplier of smartphones in the world, behind Apple and Samsung.

“Q2 needs to be the bottom of the barrel for Nokia with some positive impact of the new products coming in Q3. We said things would get worse before they would get better and that is exactly what happened. Question is when are they going to get better? We do not believe they will materially improve before the second half of 2012,” Milanesi said.

“I don’t think Nokia had any other option than go with Microsoft. The OS and Nokia's hardware plus the potential that they have shown on UI with the N9 gives me confidence. Their biggest challenge will be getting the ‘wow’ back in the brand.”

Earlier this year, Nokia shocked onlookers by completely cancelling its 2011 outlook due to negative impacts on its devices and services division.

This article originally appeared at itpro.co.uk

Source: Copyright © ITPro, Dennis Publishing

See more about:  nokia  |  posts  |  losses  |  smartphone  |  sales  |  dip
 
 

Readers of this article also read...

In Pictures: Corsair's brand new Obsidian 750D PC case 

In Pictures: Corsair's brand new Obsidian 750D PC case

 
Telstra supports International Day Against Homophobia, Biphobia and Transphobia 

Telstra supports International Day Against Homophobia, Biphobia and Transphobia

 
Toshiba's new 2013 laptops unveiled 

Toshiba's new 2013 laptops unveiled

 
Exclusive First Look: Gigabyte's Z87X-UD3H 

Exclusive First Look: Gigabyte's Z87X-UD3H

 
Photos: Samsung's Aussie Galaxy S4 launch 

Photos: Samsung's Aussie Galaxy S4 launch

 

Latest Comments

Latest Competitions

Experience The Evil Within at an exclusive VIP event! 

Experience The Evil Within at an exclusive VIP event!

10 VIPs will win a place at this exclusive event to get hands on time with Bethesda's upcoming horror title.
Win! Godzilla Prize Packs 

Win! Godzilla Prize Packs

STOMP ALL THE THINGS.
Win! Batman: Assault on Arkham 

Win! Batman: Assault on Arkham

Na na na na na na na WIN STUFF!
Win! Destiny 

Win! Destiny

We're giving away a copy of next great console shooter!
Win! 300 Rise of an Empire 

Win! 300 Rise of an Empire

We're giving away five awesome prize packs!
 

Latest Poll

What PC component are you planning to upgrade in the next six months










Ads by Google

From our Partners

PC & Tech Authority Downloads