Nokia smartphone sales drop 36%

Nokia: 'it's not technology, it's what you do with it' campaign
Nokia: 'it's not technology, it's what you do with it' campaign

Nokia has posted a massive loss for the second quarter after smartphone sales plunged by 36% year on year.

Sales of smartphones plunged from €2.35bn to €1.54bn year on year, contributing to an operating loss of €826m.

The company is making the transition from devices that use the Symbian operating system to Lumia devices that run off the Windows Phone operating system.

It has struggled to compete with rivals such as Apple and Samsung and made a $1.2bn pre-tax loss in 2011.

Lumia shipments have increased quarter on quarter in Q2 to four million units, in line with forecasts, but the average selling price of Lumia devices in the second quarter was €186 compared to €220 in the first quarter.

Last week, Nokia halved the price of its flagship Lumia 900 phone in the US.

Marketing expenditure increased on the previous quarter due to higher expenditure on Lumia devices alongside an expanded regional distribution of Lumia devices.

Year-on-year marketing spend declined primarily due to lower spend on Symbian devices and cost controls.

Stephen Elop, chief executive at Nokia, said: "We plan to provide updates to current Lumia products over time, well beyond the launch of Windows Phone 8.

"We believe the Windows Phone 8 launch will be an important catalyst for Lumia.  We made good progress establishing our location-based platform with businesses like Yahoo, Flickr, and Bing."

Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

Lynx unleashes £9m 'Peace invasion' campaign
Social Brands 100 Youth: Pizza Hut most social youth brand in UK
Cheryl Cole is wild and arresting in new L'Oreal work
Morrisons told not to show alcohol ads during YouTube nursery rhymes
O2 head of brand Shadi Halliwell departs after 23 years at company in restructure
Tesco hit by further sales decline as it turns to digital Clubcard and social network
Branding guru Wally Olins dies aged 83
Duracell short film captures epic Transatlantic voyage
Ash runs Tinder experiment to show smokers are less desirable to opposite sex
British Airways teams up with Gerry Cottle Jnr for summer of rooftop film screenings
Arklu says 'girls can be superheroes too' with doll design competition
Coke enters squash market with Oasis Mighty Drops
Virgin Galactic signs up Land Rover as space flight sponsor
Motorola marketer Andrew Morley departs as Google gears up for sale to Lenovo
US Airways apologises after tweeting obscene image at a customer
Mumsnet admits users' emails and passwords accessed via Heartbleed bug
Thetrainline.com backs 'rubbish' mobile app with TV ad
Powerade launches global World Cup campaign
Burberry's flagship Shanghai store facade responds to weather changes
Subway considers taking fast food to fast lane with F1 sponsorship
Ikea splurges 'grey' Belgium with colour
Grim outlook for Tesco boss Philip Clarke ahead of expected profits fall
Thomson to create first crowd-sourced wedding decided by Facebook fans
Currency wars meets origami in Alpari FX trading ad campaign
Amazon rumoured to launch 3D smartphone in September
Facebook to allow European users to store and transfer money on site, claims report
Unilever pilots multi-brand advertising with YouTube beauty channel
Lego, Coca-Cola, Net-a-Porter, Bitcoin and AOL: the digitally creative brands
Dove tries to tell women their beauty is innate through placebo patches
Wonga faces social media storm after forcing Twitter to remove satirical material