Nokia reports loss ahead of first Windows Phone launch

Nokia will start selling smartphones running Microsoft's Windows Phone software before the end of the year in some markets

Nokia reported a net loss and a fall in revenue for the third quarter, despite selling more phones than analysts had expected.

The company reported sales of €8.98 billion (US$12.33 billion), down 13 percent year on year, making a net loss of €68 million, compared to a net profit of €529 million a year earlier.

The company stands and falls with its phone sales. During the third quarter it sold 106.6 million phones, down from 110.4 million during the same period last year, but still more than analyst Geoff Blaber of CCS Insight had expected.

However, users paid much less for their Nokia devices: the average selling price dropped from €65 to €51.

"It is is clear that Nokia priced aggressively to drive volume," said Blaber.

Although the lack of competitive smartphones is the main reason for Nokia's current troubles, a lack of dual-SIM phones has also hurt the phone maker in the past. Now, however, Nokia's introduction of dual-SIM phones for emerging markets has helped prop up sales, Blaber said.

Nokia shipped about 18 million dual-SIM devices in the third quarter, it said, allowing it to gain market share in places such as India, where dual-SIM phones are popular.

Nokia also sold 16.8 million smartphones during the third quarter, leaving the Finnish company once again behind Apple, which sold 17.07 million iPhones. A year ago, Nokia sold 27.1 million smartphones and Apple shipped 14.1 million iPhones.

More than eight months have gone by since Nokia announced its decision to go with Microsoft Windows Phone. Next week, the work the company has done since then is expected to bear fruit, as the company will likely announce its first product or products at the Nokia World event in London.

"In reality, what Nokia does next week will be more important that these results," said Blaber.

The results were the "best-case scenario" for Nokia, and in London the company has to show how it plans to grow next year with the help of Windows Phone, according to Blaber.

Nokia said it will sell Windows Phone-based smartphones "to consumers in select countries later this quarter" and then "systematically increase the number of countries and launch partners during the course of 2012."

Send news tips and comments to mikael_ricknas@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesconsumer electronicssmartphonesNokiaMobile OSesfinancial resultsmobileWindows Phone

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?