News by Andrew Kameka on Tuesday April 29, 2014.
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Nokia has struggled in recent years to regain its form as a leading smartphone manufacturer. The company had a few bright moments of recovery with sales increases of its Lumia smartphones before deciding to sell its handset division to Microsoft, and the reason for that sale can best be seen in the financial earnings of the first quarter of 2014.
In its final quarter as a smartphone vendor, the Nokia devices unit lost 326 million euros (US $452 million). During the same period in 2013, Nokia lost 120 million euros. Nokia said that it sold fewer smart devices last quarter as it focused its attention on closing the sale to Microsoft, which took longer than expected and didn't close until four days ago. Though Nokia did launch the Android-powered X line of phones, the company did not prosper much from that effort. The earnings report sums up the disappointment by saying:
"On both a year-on-year and sequential basis, our Mobile Phones net sales were affected by competitive industry dynamics, including intense smartphone competition at increasingly lower price points and intense competition at the low end of our product portfolio."
Nokia also declined to say exactly how many Lumia smartphones it sold. The company would say only that sales were down, meaning the final quarter of Nokia as an independent smartphone vendor was a letdown. Microsoft hopes its turn as a phone maker will be more successful.
Andrew is based in Miami, Florida.