Losses
are increasing for the Finnish company. Nokia Corporation (NYSE:NOK)’s third
quarter results were released recently, and the company, it was shown, suffered
a loss of 969 million Euros, or about $1.27 billion. The company lost out on more
than what was predicted by the various analysts, which was 695 million Euros.
Also, the extent of the regression the once famous and hugely popular mobile
company is made obvious, when one compares the third quarter results of this
year with that of last year’s. Last year, during the third quarter, the company
had suffered a loss of about 68 million Euros.
The
company brought out the results of is third quarter right before the release of
their new range of Lumia smartphones. The Lumia 920 as well as the Lumia 820
will be released sometime next month. The CEO of Nokia, Stephen Elop said
recently, that Microsoft’s Surface can help turn the market current in their
favor.
Out
of all the phones that the company sold during the third quarter, it managed to
sell only about 6.3 million smartphone devices, out of which, the minority of
them, surprisingly, were the Lumia phones which have a Windows operating
system. The Lumia phones sales amounted to about 2.9 million copies. The 3.4
million other smartphones are mainly the Asha phones which Nokia has been
selling mainly in the developing countries, such as India.
Nokia
is hoping for better results during the next quarter of this year, and although
other smartphones are competitors, Nokia is encouraging other manufacturers to
go in for the Windows operating system, since it would benefit the ecosystem,
and make it more secure.
Microsoft
is preparing to launch its Surface phone to be operated upon their native
Windows operating system. Although the Surface phone is a direct competitor to
Nokia, the ecosystem will be far more secure since it will draw attention to
the Windows Phone 8 operating system. This will benefit Nokia, since people
might take renewed interest in the smartphones which are running on this system.
Nokia will be launching the new Lumia phones next month, which will compete
with the other phones based on the Windows operating system.
Shares
of NOK ended lower by over 4% to $2.80.
Did you not notice that Microsoft and Google also both posted poor performances too?
ReplyDeleteOnly Apple seems to be doing well, but then they have a cult following.
Actually Nokia beat analyst expectations and made small underlying operating profit, only thing that was disappointing was the Lumia sales. That due to MS announcing WP8 and no upgrade possibility for 7.5 devices and then Nokia deliberately announcing 920&820 before iPhone5 was launched.
ReplyDeleteBut anyone in the internet is free to interpret the quarterly report as they wish, we all have our motives. motive for so called "US analysts" has been known for long time in Europe. Boosting Apple crap is priority #1.