Nokia reports huge losses
Nokia Corporation has just released its financial figures of the first quarter of 2012 amidst tough market competition and the failure of the Lumia phones to make a significant impact on global sales. Nokia however stated that it sold more than 2 million units of the Lumia phones worldwide.
The Nokia House, Finland. (Image credit: wikipedia)
On Thursday, Nokia confirmed that sales for the quarter plummeted 29 per cent year-on-year to €7.3 billion (RM29.6 billion) , which leads to about €1.3 billion (RM5.27 billion) operating losses. Nokia also warn that the financial result for the second quarter of 2012 will not be much better either due to the extension of tough market competition.
Stephen Elop, Nokia’s chief executive admitted that the result has been very disappointing. He attributed this result to the harsh market circumstance particularly in the UK market. Nokia is a company in transition since its adoption of the Windows Phone platform but things did not get better for the firm – strong competition from rival vendors such as Apple and Samsung proved to be the main reason for its decline.
Though Nokia successfully launched four Lumia phones in the US but worldwide sales have not been very encouraging. Sales in the US have been stronger than expected but received poor response in the UK.
Nokia’s flagship phone, the Lumia 900 was successfully launched in the US and received many awards as well as acclaims but it was also smeared by a software glitch, which has been a mjor embarrassment for the company.
Nokia has been struggling to make an impact in the market but sales of rival phones such as the Android platform and Apple continue to gain huge sales.
Via: V3
Nokia reports huge losses
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