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Nokia Lumia sales drop in third quarter, and fourth quarter won't be much better

News by Andrew Kameka on Thursday October 18, 2012.

nokia news · smartphone news · andrew kameka

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Nokia has struggled to make strides in the smartphone market as it transitions from Symbian to Windows Phone, and the company's most recent earnings report shows no sign of success. Nokia announced today that it sold 2.9 million units of its Lumia line of Windows 7 smartphones, a sharp drop from the 4 million phones sold in the previous quarter. Sales were especially weak in North America, where Nokia sold only 300,000 phones, down from 600,000 in the previous quarter.

The decline in sales was no surprise according to Nokia CEO Stephen Elop. Considering that Nokia has spent the last three months mentioning that it will introduce Windows Phone 8 handsets this year and previous Lumia models will not receive an upgrade to Windows 8, consumers were bound to shy away from Windows Phone 7. Despite the upcoming launch of its Lumia 920 and Lumia 820 devices, Windows Phone 8 might not be a rapid success. Elop forecasts that "product transitions and our ramp up plan for our new devices" will lead to a difficult fourth quarter. Despite increased spending during the holiday season, Nokia bmight find it difficult to convince consumers that a Lumia device is their best option.

Nokia reported a loss of $754 million on $9.4 billion in revenue in the third quarter. Much of the losses were related to restructuring costs, but the company also benefited from payments from Microsoft meant to stabilize finances while Nokia transitions to Windows Phone.

source: Nokia, via: The Verge

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Andrew Kameka
Andrew is based in Miami, Florida.

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