Nokia’s slump continues with $1.27 billion quarterly loss, hopes Lumia 920 will turn things around
Not the savior that it was hoped to become, the Windows Phone-running Lumia smartphones have failed to get Nokia out of the red. The company’s Q3 financial results released today show that the Microsoft partnership has yet to bear a fruitful outcome, as the once mighty ruler reported a net loss of $1.27 billion.
Although overall net sales in the third quarter dropped to $9.45 billion, a 4% decrease from the previous quarter, this was better than analysts’ expectations.
Nokia managed to sell 6.3 million smartphones in the quarter, a far cry from the 16.8 million units reported last year. Only 2.9 million of the sold smartphones were Lumia handsets. It also sold 76.6 million units of “dumb” phones – a year-on-year 15% decrease, but a 4% increase from the last quarter.
The company’s CEO Stephen Elop admitted as much of the trouble brewing in the third quarter. “As we expected, Q3 was a difficult quarter in our Devices & Services business,” he said. “In Q3, we continued to manage through a tough transitional quarter for our smart devices business as we shared the exciting innovation ahead with our new line of Lumia products.”
While Nokia is pinning its hopes on the fourth quarter release of the flagship Lumia 920 and Lumia 820, the first two Windows Phone 8 devices from the Finnish company, it has to overcome challenges from HTC and Samsung with their Windows phone offerings, who are also looking to grab a big slice of the lucrative holiday shopping pie.