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Nokia Posts Q3 Loss

10/20/2011 09:07:44 AM Eastern
Helsinki, Finland - Nokia CEO Stephen Elop reaffirmed plans to market a Windows 7 smartphone in the fourth quarter in select countries following a plunge in its own Symbian-based smartphone sales in its fiscal third quarter ended September.

 For the quarter, the company narrowed its operating losses, which shrank to 71 million euros ($97.8 million) compared to a second-quarter loss of 487 million euros ($670.8 million).

 Overall net sales, including Navteq and Nokia Siemens Networks,  fell 13 percent to 8980 million euros $12.4 billion)  and sales of handset and related services fell 25 percent to 5 392 million euros ($7.4 billion).

In North America, handset and services revenues fell 68 percent to 73 million euros ($101 million), and unit sales fell 78 percent to 700,000 from a year-ago 3.2 million.

Currency conversions were calculated at a rate of 1 euro equaling $1.38.

nThe company's worldwide smartphone sales fell 38 percent in units to 16.8 million, but sales of lower price non-smart phones rose 8 percent to 89.8 million units.

 The smartphone decline was driven by "the strong momentum of competing smartphone platforms relative to our higher priced Symbian devices, as well as pricing tactics by certain competitors," the compay said.

Although the company overall posted an operating loss, the handset and services unit still posted a n operating profit of  132 million euros, down from a year-ago 807 million euros, for an operating margin of 2.4 percent.

 Said Elop of Nokia;s Windows plans, "I am encouraged by our progress around the first Nokia experience with Windows Phone, and we look forward to bringing the experience to consumers in select countries later this quarter. We then intend to systematically increase the number of countries and launch partners during the course of 2012."
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