Nokia Corporation (ADR) (NYSE:NOK) has been going through tough times lately. The Finnish handset maker just declared a net loss incurred in Q3 amounting to $754 on $9.4 billion revenue. This has been aggravated by declining Symbian sales and a drop of 28% in the number of Lumia devices based on Windows operating system sold as compared to Q2 results.
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Nokia has sold off barely 2.9 million Lumia devices in the quarter. The figure includes just 300,000 Lumia devices in the US, down from a total of 4 million and 6,00,000 in the US in the last quarter. The down quarter was expected for Nokia. Since consumers, who are interested in Windows Phone devices, will probably hold off until Q4, when Microsoft releases the Windows Phone 8 update that represents a crucial feature wallop over Windows Phone 7. Lumia sales were also further harmed once Microsoft made it public that no legacy devices would be updated to the upcoming version of Windows operating system.
That being said, Nokia expects Q4 to be soft. There have been projected losses around 6% due to transitions in products and the continuous transition from Symbian to Windows Phone. The company is expecting to make strong sales when Lumia 820 and 920 devices are launched in November. However, Nokia notes that will all new gadgets, there will be significant operating expenses that will probably be expensive with the international Lumia 820 and 920 launches. Q4 2012 and Q1 2013 will be taxing times for Nokia since the company his bet on its future on the success of the Windows Phone platform. If Windows Phone 8 fails to gain traction as WP 7 and 7.5, there may be excruciating quarters left for the juggernaut that once dominated the mobile airwaves.
Shares of NOK fell 4.76% to $2.80 in Thursday’s session. At one point of time, the stock was up as much as 10% in the pre-open session.