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.