Nokia has reported an operating loss of $7.1bn as phone sales slip 25%. And what’s more worrying, sales of smartphones also fell 38% compared to the same time last year, as Nokia prepares for the release of its new Microsoft handsets due out later this year, according to boss Stephen Elop.
In total, Nokia sold 16.8 million smartphones in the July to September period. Its mobile phone sales, a traditional core market, fell 3% to 106.6 from 110.4m units but grew share in emerging markets like India, where it shipped 18 million dual SIM devices.
But all is not lost for the Finnish phone maker, whose losses announced yesterday, was less than anticipated, despite ditching its home grown Symbian OS in favour of a exclusive deal with Microsoft Windows.
Elop said he was “encouraged” by the progress we made during Q3, noting “there are still many important steps ahead in our journey of transformation.”
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“We also strengthened our Smart Devices line up in Q3, with the launch of our first smartphones running Symbian Belle, which improves the user experience and strengthens the competitiveness of our product portfolio.”
Elop also said he was “encouraged” by the progress with Nokia Windows Phone project, which the Euro giant hopes will pull it out of the doldrums, as Apple’s iPhone 4S and Android’s like HTC and Samsung continue to make gains at its expense.
“We then intend to systematically increase the number of countries and launch partners during the course of 2012.”
Nokia also said it has a “strong” cash flow and liquidity position with net cash of EUR 5.1 billion.
Previous reports indicated Nokia Australia is planning to launch a new N800 Windows Phone prior to the Christmas period.
The Nokia World conference is taking place in London next week, where the new Nokia Windows phone will be unveiled.
Nokia slashed thousands of jobs and went on a cost cutting extravangaza earlier this year as it seeks to salvage the once premier phone brand.