Nokia has some of its worse earnings, ever

Nokia has some of its worse earnings, ever
Nokia warned two weeks ago that its quarterly earnings were going to be bad, and they certainly were today.

For the Q1, Nokia posted a net loss of $1.2 billion on revenue of $9.72 billion. Revenue fell 30 percent year-over-year and the company had a profit of $451 million in the same quarter last year.



Most harsh for the phone maker was smartphone sales, which dropped by 55 percent to $2.23 billion. Overall mobile phone device sales fell 40 percent to $5.5 billion.

Operating margins came in at a negative 3 percent, with no end in sight. Nokia says it will cut costs by another $1.31 billion by the end of 2013.

Says CEO Stephen Elop of the challenges faced by the company: "We exceeded expectations in markets including the United States but establishing momentum in certain markets ... has been more challenging. We are navigating through a significant company transition in an industry environment that continues to evolve and shift quickly."

Nokia has put all of its eggs in one basket, new Windows Phone 7 devices which are popular but will need a large push if they ever hope to take significant share from Apple and Android.

Written by: Andre Yoskowitz @ 19 Apr 2012 20:53
Tags
Nokia Sales Smartphone quarterly earnings
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  • 5 comments
  • ChikaraNZ

    "We exceeded expectations in markets including the United States"...
    Hmmm, a $1.2bn loss - for a quarter - and that is better than they expected?
    Wow.

    20.4.2012 09:31 #1

  • GernBlan

    Nokia tried to do their own thing at a time when iOS and Android were simply better. The best thing they could do (if it's not already too late) is put out about 1/2 dozen Android phones...quickly...and quit focusing on Windows (which will always be a distant 3rd or 4th) and definitely stop the stupidity of a proprietary OS like they've been focusing on (and failing) for years.

    They make good hardware, but they're glaringly missing an OS.

    20.4.2012 12:57 #2

  • Digmen1

    Its amazing how companies can be at the top and then start to fall
    Eg Nokia
    Sony
    Word Perfect
    First Choice
    MySpace
    Motorola

    20.4.2012 17:09 #3

  • lfcrule

    Hey Digmen1

    When did First Choice start to fail ?

    23.4.2012 05:59 #4

  • Digmen1

    First Choice started to fail in the 1980's when Microsoft Office came out.
    They had the low end office productivity software market tied up.
    Then they just dissapeared.

    23.4.2012 14:01 #5

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