Nokia Q2 results disappoint as sales plummet

Nokia Q2 results disappoint as sales plummet

Nokia has reported ‘disappointing’ Q2 results after a 20% drop in device sales for the second quarter ended June 30 2011.

The manufacturer shipped 88.5 million handsets, 20% down on the 111 million it shipped during the same quarter in 2010.

Smartphone volumes were down 34% to 16.7 million units, from 25.2 million a year ago. Average selling price (ASP) was up by 2% to 62.

Nokia reported revenue of9.3bn, down 7% from the same period last year. It reported a loss of 487m, compared with a profit of 295m in Q2 2010.

Nokia CEO Stephen Elop said: The challenges we are facing during our strategic transformation manifested in a greater than expected way in Q2 2011. However, even within the quarter, I believe our actions to mitigate the impact of these challenges have started to have a positive impact on the underlying health of our business. Most importantly, we are making better-than-expected progress toward our strategic goals.

‘During this time of transition, we expect competitive pressures to continue. However, we have a clear strategy to address the concerns about our product competitiveness. In Q2, both our Smart Devices and Mobile Phones business units moved forward on their plans.

‘Thus, while our Q2 results were clearly disappointing, we are executing well on the initiatives that are most important to our longer term competitiveness.  Some progress is already evident, and thus we are targeting to end this year with more net cash and liquid assets than at the end of Q2 2011. 

‘We firmly believe that our deliberate and unwavering commitment to making the changes necessary at Nokia is the right way to deal with the disruptive forces in our industry and drive value creation for our shareholders.’

Written by Mobile Today
Mobile Today


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