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Thursday 26 January 2012
Nokia records £800 million loss despite strong start for Lumia range
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Net sales were also down year-on-year, 21 per cent lower than a year earlier; from €12.65 billion to just over €10 billion. This time last year, Nokia was reporting an €884 million profit.
Nokia sold 19.6 million smartphones in the period and 93.9 million dumbphones, a total of 113.5 million devices, which was down from 123.7 million units in the same period of 2010. The average handset selling price was €53, down from €69 a year ago.
All this, despite the fact that the company's CEO, Stephen Elop, announced that over 1 million Lumia handsets have been sold already and the company seeing Series 40 devices passing the 1.5 billion mark earlier this week.
"In the war of ecosystems, clearly there are some strong contenders already on the field," stated Elop. "And with Lumia, we have demonstrated that we belong on the field. Our specific intent has been to establish a beachhead in this war of ecosystems, and country by country that is what we are now accomplishing.
"And, while we progressed in the right direction in 2011, we still have a tremendous amount to accomplish in 2012, and thus, it is my assessment that we are in the heart of our transition.
"In summary, with a strong balance sheet, our performance in mobile phones and the new excitement around Lumia, we are confident that we are on the right track to build long-term value."
Nokia has seen huge job cuts and a dramatic share price drop in the last 12 months. Elop has an incredibly tough job on his hands if he is to steer the sinking ship to safety.
This post was written by: Irfan Jam
Irfan Jam is a professional blogger, web designer and front end web developer. Follow him on Facebook
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