Nokia loses more than 1,400 million Euros in the second quarter

Thursday, July 26th, 2012 5:41:54 by

The Finnish mobile phone maker Nokia has
reported total losses amounting to 1,410 million Euros in the second quarter, compared to 368 million Euros in the same period of 2011. The company has experienced a significant drop of 18.6% of their income and 5% in the number
of units sold under the pressure from manufacturers like Apple or Samsung.

Specifically, turnover totalled 7.542 million Finnish Euros, 18.6% less, with a drop of 34% of net sales of Smartphones and 11% in sales of mobile phones. In fact, smartphone
sales declined by 39% to 10.2 million units, of which 4 million for the device Lumia, while the lower end phones rose 2% to 73.5 million units.

In response to the different geographical areas, the number of units sold by Nokia fell 17% in Europe and 60% in North America fell 5% while in the Middle East and Africa, and 30% in China.

In contrast, the Finnish company sold 17% in the Asia Pacific region. Nokia CEO Stephen Elop acknowledged that the second quarter was a period of "difficult" for the company, which is "urgently running" its restructuring
program, including the sale of nonstrategic assets.

In this sense, the Finnish multinational said that their net liquidity position at the end of the second quarter amounted to 4,200 million Euros, a figure better than expected.

Overall in the first six months of the year, Nokia accumulated net losses of 2,339 million Euros, compared to the
24 million Euros in the same period in 2011, and while sales declined by 24.3 % to 14.896 million Euros. Furthermore, the Finnish company warned that it expects third quarter to be "a difficult period in the segment of smart devices."

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