Nokia posted a $1.72 billion Net Loss

Nokia CEO ‘Stephen Elop’ didn’t think twice about admitting the Finnish company’s “difficult Q2” struggles, the months of April through June proved to be an effective insight on how much the phone juggernaut [previously] has massively declined in sales despite the successful Lumia shipments.

The company has posted a massive net loss of about 1.41 billion euros or 1.74 billion US dollars — more than twice the amount that they have predicted earlier, Nokia needs to hire new financial analysts (pun intended).

What’s even more troublesome is the fact that Nokia’s dreadful Q2 net loss this year has been amplified by four times when compared to the 368 million euros back in 2011 of the same period — more than twice the amount previously anticipated by their analysts. Nokia’s smartphone net sales has also decreased by 5% (quarter by quarter) since the sales of Symbian phones has dropped too but this does not seem to pose any signs of concern for the company largely due to the fact that it is partially offset by the higher Lumia net sales.

It’s not all bad news for Nokia though, Elop is still positive that the partnership between Microsoft and his company will result into something great despite the continuous rise of Android and iPhone sales internationally.

Nokia has shipped about 4 million Lumia devices in Q2 alone [a 100% growth compared to the previous period] and there are no signs of stopping as of yet. In hopes of improving sales figures, the mobile phone giant is poised to launch an aggressive marketing campaign for its upcoming Windows 8 devices and by building up its reputation for after-sales support by promising that they will still provide firmware updates for current-gen Lumia devices — even well after the launch of Windows 8 devices.

This is great news for current Lumia owners, Android users can only hope for such statements unfortunately. (yes, that’s a blatant shot to Samsung and many other OEMs out there).

It’s worth noting that Microsoft is bound to release a newer version of its mobile OS (Windows 8) and is doing its best to increase its mobile app portfolio. Nokia — on the other hand — is now distributing updates (new features) for current WP7 devices and is well underway to revamp its Lumia lineup which is said to showcase the highly-acclaimed PureView imaging technology. We can tell that both companies can increase their leverage in the smartphone segment even more just by working hand-in-hand.

Let us serve you a short refresher: Android is currently the most popular mobile platform in the world thanks to its growing application and media marketplace. Meanwhile, Apple’s iOS still owns the most popular phone brand with the iPhone. Analysts citing their channel checks say the iPhone 4S is still the most popular smartphone in many carriers worldwide — which of course, includes both the largest players in our country (Globe and Smart).

There is no doubt that it will be hard for Nokia and Microsoft to increase their user base since Samsung and Apple are very strong contenders in this segment, one of the ‘easy-er’ solutions would be taking advantage of RIM’s declining market share (sorry RIM) by catching Blackberry users, another is by slowly paving through Android and Apple’s continuously rising number of users.

They [Microsoft and Nokia] need to get those developers into work fast and release those better-spec’d Lumia phones as soon as possible if they want a better interim report to show us early next year. Keep those fingers crossed Nokia.

{source}

32 Comments on this Post

  1. Justin

    Let’s hope this trend continues throughout the year. Nokia sucks and I wish they would shut down/declare bankruptcy already!

    Reply
    • Yes yes yes !! After buying the N97 over the iPhone 3Gs, I hope they rott in hell. I’m not getting a Nokia again.

    • oobermensch

      Nothing more amazing than logic of imbeciles who would want to see a company go bankrupt. Let me explain it in such a way that even the likes of you can understand.

      More manufacturers = more competition between them = they will have to think of ways to do better than the others = creates innovation (new devices, features, etc) = CONSUMERS WIN.

      If it’s just iOS and Android, then we’d all have the same situation as we already have with Globe and Smart. Only 2 players in the market, and we just choose the “lesser evil”.

      You’re welcome. <3

    • Justin

      @oobermensch: Actually, oobermensch, you are the imbecile! Nokia’s share in the smartphone market is soooo small that they are hardly regarded by iOS and Android as ‘competition’ and Nokia doesn’t come out with any innovation that the 2 giants don’t already provide their consumers. In other words, even if Nokia died, which I hope they do, it would NOT make any difference whatsoever in the current smartphone ecosystem. Think muna, bro, before you reply. Nag-mumukha ka lalong tanga, eh.

    • “…would NOT make any difference whatsoever in the current smartphone ecosystem…”

      san mo to nakuha mr. analyst?

    • oobermensch

      “Nokia’s share in the smartphone market is soooo small” Has this monkey been smoking something? How are millions of Symbian OS users in Asia and Europe considered insignificant? It’s an uneducated opinion to say that they aren’t even regarded as competition in the smartphone arena. It’s so ironic that you talk about Nokia not innovating at all, despite the 808 Pureview shattering all image quality boundaries from current cream-of-the-crop smartphones like the iPhone and Galaxy S III, and no other phone even comes close. Polycarbonate construction of the N9 and the Lumia 800 and 900 is another innovation that no other smartphone has. I am not pro-Nokia. I am just saying that all your idiotic claims are totally invalid, and you only base your statements on anger because you had an entirely isolated experience with a Nokia phone.

      Ask yourself, when was the last time call rates and text messaging rates went down by a significant margin? Why does unlimited mobile internet still cost so much? Why do you think Smart and Globe introduced unlimited call services when Sun Cellular was new to the scene? If Sun didn’t establish itself, do you think Smart and Globe would have introduced unlimited calling services within their respective networks?

      When you using the spiel “be careful what you say. You’re just going to look more stupid”, it’s pretty God damn clear who lacks reasoning to refute and present counter arguments. It’s as if 2 people were on a live debate, and the losing person goes “wala akong pakialam. Ako naman tama eh”.

      Ah well, no use arguing with monkeys, eh? <3

    • “How are millions of Symbian OS users in Asia and Europe considered insignificant?” Cunt. They’re europeans, they can’t give a fuck about Symbian. It’s good as dead. Good riddance.

      And oh, the europeans carriers couldn’t even care less.

      http://techcrunch.com/2012/04/17/european-carriers-arent-digging-nokias-lumia-line/

      You’re dumber. Nokia going bankrupt wouldn’t even affect the economy. I just hope they die already. On the other hand, it would give RIM a second chance…

    • You’re right oobermensch :)… That’s compitition at its finest

    • oobermensch

      @daryl Thank dude. It’s just so funny how that other dude gave an example about European carriers not “caring” about Windows Phone, despite the fact that there are millions and millions of Symbian users (which was the topic of discussion, but the other person thought it was intelligent enough to refute it with a Windows Phone example :)) ) in Asia and Europe. And the examples they give are about “NEW SALES”, and not the CURRENT USER BASE. Then again, not much help if we try to convince trolls anyway. :)) They will go to their grave swearing Nokia sucks, which is fine since it’s their own narrow, and extremely insignificant, not to mention unintelligent opinion anyway. So, the world will still turn. :D

    • Marcelino

      @oobermensch: Very well said.

  2. anonimus

    Wow, harsh. I’ll say nokia phones are still the most durable. Have dropped my almost 2 year-old n8 (bare!) countless times and it didn’t break and didn’t turn off. (Kinda wish sometimes that it would stopped working just so I’ll have reason to switch to iPhone.) It’s just really the lack of apps for nokia. Hope the company do well with Windows phone 8 and Pureview. And of course Nokia Drive, FTW!

    Reply
  3. im still a nokia avid fan. though i hab a bb phone and iOS device. been using my e63 for almost 4yrs. and still enjoying it a lot plus the free internet. ;)

    Reply
  4. I hope nokia can still survive. However, if this continue till the last quarter maybe early next year they will be bankrupt.

    Reply
  5. Chris P.

    Maganda at madami kasi application ng Android at iOs phones kaya mabenta talaga. Pero kung mga entry level feature phones maganda pa din kung Nokia phones. Kaso smartphone era na ngayon. Weather weather lang yan.

    Reply
  6. Mr. Serious

    Renan, are you reading this? :D

    Reply
  7. SpiderWak

    If this trend continues and Nokia will eventually get bankrupt, will Microsoft buy them out?

    Reply
  8. my almost 5 year nokia n70 is still alive. build quality is still nokia’s good deed.

    Reply
  9. Stephen Kingston

    Wow Renan, could you kindly give me the reason why this happened? Are you there?

    Reply
  10. Huddaf

    Nokia’s stubborness has already cost them a lot. If the trend continues, it’s bye bye for them.

    Reply
  11. pureview with lumia design running android will surely bring nokia back on track bigtime!!.. :)
    They should fire Elop and hire someone from google instead…

    Reply
  12. MR. android

    nokia will survive if they create an android phone instead of a logic OS..

    Reply
  13. Now, how does it feel shitting on your pants?

    Metro-metro-lumia-lumia huh?

    Anuh peow?

    Microsoft best days are over!

    Jejejeh!

    Reply
  14. Kendra

    i still like nokia except that i treated it as my BB as a backup phone. just for SNS, camera, voice, sms, and that’s it. lack of apps nor excitement to use it…PERIOD. but still i hope nokia can survive this hurdle.

    Reply
  15. still a loyal Nokia fan here, its phones last a lifetime.

    Reply
  16. I just could not understand why Nokia didn’t do the way of samsung. Samsung makes android, windows and their own bada OS. Nokia could have done well and they might still be the top phone maker today, had hey made android phones together with windows and symbian. Oh Nokia you’re just not thinking right, you deserve where you are now!1!

    Reply
    • Nobody wants a Windows Phone. They should’ve went with Android. Ahh. It would be an honor holding one with Vanilla Android. The world would be going fucking crazy. Nokia phone + Vanilla Android (No OEM skins) = HEAVEN.

  17. SpiderWak

    It’s always good to have a third option. There’s Android and iOS, and then there’s WP. I’ll keep my optimism.

    Reply
  18. May pag-asa pa rin ang Nokia sa palagay ko. Ang trump card nila: Pureview technology.

    Reply
  19. Junjun

    nokia phones are indeed durable. Lahitnna malglag mo ng ilang beses ung phone eh ayos pa rin. I just hope that they would be able to bounce back. We need more competition in the market…this is good for us, consumers.

    Reply
  20. iOSLOVER

    ANG NOKIA KASI KALEVEL NA LANG NG MGA MADE IN CHINA NA PHONES. ANO MAIINSTALL MO DUN? KONTI LANG?

    Reply
  21. thejorlanb

    I think, there must be something we dont know that Nokia knows, that is why they still believe in WP…

    Is it the OS who kills Nokia? Or is it the CEO? Or is it the other branches of Nokia (Nokia Siemens network?) who bleeds money?

    Despite this tragedies, why does Nokia kept WP? They had one shot of an android-like OS, meego, but they killed it, why?

    Even IDC predicted WP to be the second largest phone OS by 2016…

    There must be something that tells Nokia to keep WP.

    Reply

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