News by Andrew Kameka on Thursday July 18, 2013.
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Nokia released its financial reports for the second quarter of 2013, and the company predictably lost money in the last three months. However, the Finnish manufacturer greatly improved on its 2012 results and increased its phone sales. Nokia sold 7.4 million Lumia phones, a 32 percent increase compared to same period last year. By bringing more affordable Windows Phone 8 handsets to global markets and more top-level smartphones in the U.S. like the Lumia 928 and Lumia 925, Nokia was able to increase its market share and sales performance. Smartphone shipments were down, but it was the best Lumia performance to date.
The uptick in Lumia sales were not enough to return Nokia to profitability just yet. Nokia lost 115 million euros (US $150 million) in the most recent quarter, down from the 824 million euros (US $1.07 million) lost during the same period in 2012. Nokia claims that it had an underlying profit thanks to strong performance from its Nokia Siemens division and other accounting benefits, but the overall performance is not moving at a pace fast enough to return Nokia to a more prominent position anytime soon.
Sales this quarter fell short of investor expectations, but were better than Nokia anticipated. Nokia anticipates that the same will happen next quarter as increased competition and more expenses related to launching its next round of phones, including the Lumia 1020, will lead to negative revenue.source: Nokia (PDF)
Andrew is based in Miami, Florida.