News by Dan Seifert on Thursday April 19, 2012.
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This morning, Nokia released its Q1 2012 financial reports, and it unfortunately is one of the bleakest reports the company has issued in some time. Nokia saw a sharp decline in both smartphone and mobile phone sales, and reported a huge loss even though it brought in over $9 billion in revenue.
Smartphone sales were down 38 percent from Q4 2011 and a whopping 52 percent from Q1 2011, thanks in no small part to the waning interest and lack of new devices in Nokia's Symbian line. Mobile phone sales were also down significantly, dropping 32 percent from the prior year and 24 percent from Q4 2011. Total phone sales were 82.7 million units, with 11.9 million of those being smartphones. Nokia has put all of its hopes in its new Lumia line of Windows Phone smartphones, but it only sold 1.9 million of those during Q1, not nearly enough to make up for the loss in Symbian device sales.
Nokia brought in $9.4 billion (7.4 billion EUR) in revenue during Q1, but still saw a loss of $1.7 billion (1.34 billion EUR).
Nokia CEO Stephen Elop admitted that the challenges faced by the company were greater than expected. Concerning the company's new line of Lumia smartphones, Elop said "We exceeded expectations in markets including the United States, but establishing momentum in certain markets including the UK has been more challenging."
The company's plan going forward is to continue pushing forward with its Lumia line. Nokia says that the launch of the Lumia 900 on AT&T in the U.S. has been positive, and it is banking on the low-cost Lumia 610 to reclaim market share in developing markets.
Dan is MobileBurn.com's Editor-in-Chief. Based in Poughkeepsie in New York, Dan can be found on Twitter as @DCSeifert.