Nokia makes ?1.3bn loss in latest quarter

The new range of Lumia phones has had pretty good press over here, but it seems that the buying public in the UK aren't really feeling the love for Nokia.

That's not rumour or hearsay, that is straight from the mouth of the Nokia CEO, who was talking about the company's latest financial results. Which aren't great, to be honest, but Nokia already hinted at that a couple of days back. The company sold 11.9 million smartphones, which on the face of it, isn't bad. But that's down 51% on the same period last year. As for the bottom line, Nokia made a loss of €1.3bn in that period, with a revenue of €7.4bn in the quarter.

That's obviously not just down to the UK market, but Nokia CEO Stephen Elop said in a statement: 'We have launched four Lumia devices ahead of schedule to encouraging awards and popular acclaim. The actual sales results have been mixed. We exceeded expectations in markets including the United States, but establishing momentum in certain markets including the UK has been more challenging.'

He added: 'At the same time, the lower price tiers of our industry are undergoing a structural change, and traditional feature phones are challenged by full touch devices.' By that, he presumably means that the traditional lower-end phone is now being taken over in part by budget Android devices, squeezing Nokia in an area where it has traditionally been strong.

But Mr Elop did end on a high note: 'We are confident in our strategy and focused on responding urgently in the short term and creating value for our shareholders in the long term.'

The future certainly looks brighter for Nokia, despite those losses. Talk of a Nokia tablet and no doubt, a new range of devices around the Windows Phone 8 launch, not to mention a reasonably strong launch for the Lumia range in the US, should all help as the year progresses.


Who knows, even us Brits might come back to Nokia too. But with such strong competition in the market right now, it would need something special for the company to get back to where it was five or so years back.

Written by Mobile Choice
Mobile Choice

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