19 Jul 2012

Nokia Quarterly Results Show Increase

Mobile phone manufacturer Nokia has released its quarterly interim results for the second quarter of 2012.

The results from Nokia show a marginal increase over the same period last year, although some areas showed a decrease. The recent period has been a difficult time for Nokia with a number of redundancies across their worldwide network and closures in Finland.

Overall Nokia net sales in Q2 2012 were EUR 7.5 billion. This was up from a figure of EUR 7.4 billion in the same quarter the previous year. However with the launch of many major products recently, there should have been an increase.

Looking at the figures in a little more depth Nokia Devices & Services net sales saw a decrease of decreased 5% quarter-on-quarter. However the Lumia volumes increased quarter-on-quarter to 4 million units, and overall mobile phone shipments increased quarter-on-quarter and year-on-year to 73 million units.

Commenting on these results Stephen Elop, Nokia CEO, said: “Nokia is taking action to manage through this transition period. While Q2 was a difficult quarter, Nokia employees are demonstrating their determination to strengthen our competitiveness, improve our operating model and carefully manage our financial resources.”

Over the last year, Nokia has introduced a large number of phones. Their Lumia range is growing and in addition to this they have also introduced a number of new entry level phones as well. On top of this they demonstrated their technology with a 41 MPixel phone at Mobile World Congress.

However the main question that still remains is whether Nokia can keep their current rate of spend going. They need to keep their momentum in terms of new devices. Also with Windows 8 launching soon, they need to be able to capitalise on this. In addition to this, they are undertaking their restricting programme which is bound to cause some disruption to their operations.

With RIM, makers of Blackberry delaying the launch of some of their new phones, Nokia may be able to capitalise on this and gain an additional foothold in the marketplace. With Apple and Android taking the first and second places in the smartphone operating system marketplace, Nokia need to ensure they retain as much market share as possible.

It remains to be seen how the Nokia figures and performance will fare over the coming months. Their product has been well received, but conditions in the market are tough.

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