Nokia sales continue to decline
1 min read
Nokia's revenues for the second quarter of its 2013 financial year fell by 24% compared to the same period in 2012. According to the company's financial statement, it made a loss of €115million on sales of €5.7billion. However, 21% more smartphones were shipped during the quarter, ascribed by the company to the introduction of Windows Phone 8 based devices.
Despite the apparent slide, chief executive Stephen Elop, pictured, said: "We're pleased to report an underlying operating profit for the fourth consecutive quarter on a group level." The financial report shows an operating profit of €303m before the results were restated in accordance with international standards.
Over the last few years, Nokia lost its market leading position due to competition from other devices. Amongst the measures put in place was a move to Windows Phone 8 for its smartphones. Elop noted: "Our mobile phones business unit started to demonstrate some signs of recovery in the latter part of the second quarter following a difficult start to the year."
Nokia shipped 53.7m mobiles in Q2, 27% fewer than Q2 2012, and down by 4% on Q1 2013. Sales declined by 39% to €1.4bn on a year on year basis and by 12% compared to Q1.
"In our smart devices business unit," Elop added, "we continue to focus on delivering meaningful differentiation to consumers around the world. Overall, Lumia volumes grew to 7.4million in the second quarter, the highest for any quarter so far and showing increasing momentum for the ecosystem. During the third quarter, we expect that our new Lumia products will drive a significant part of our smart devices revenue."
While revenues in this sector remained flat compared with Q1 2013, volumes increased from 6.1m to 7.4m.