Nokia smartphone sales down 34 per cent in Q2 | Mobile Devices | Mobile Entertainment

Nokia smartphone sales down 34 per cent in Q2

Nokia smartphone sales down 34 per cent in Q2
Tim Green

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Devices / Nokia / July 21st 2011 at 1:06PM

Horribly dismal quarter marked by 368m euro loss.

This must be the low point for Nokia as the company deals with plummeting legacy device sales before the new WinPho era begins.

The financials reveal the depth of the Finnish firm's current plight. Year on year revenue fell 11 per cent from 1bn euros to 927m euros, while that 368m euro loss compares with a 227m euro profit in Q2 2010.

Predictably, device sales fell across the board. Smartphone shipments were 16.7m (from 25.2 a year ago), while feature phones were 71.8m (from 85.8m).

By comparison Apple sold 20.3m iPhones in the quarter ended June 25, helping the company to more than double profit to $7.31 billion in the period.

Of course, Nokia is tackling these problems with a move to WinPho, the launch of dual SIM devices in emerging markets and the acceleration of plans for expense reductions of 1bn euros by 2013.

The first WinPho devices could ship this year.

Stephen Elop, CEO of Nokia, said: "The challenges we are facing during our strategic transformation manifested in a greater than expected way in Q2 2011.

"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."