Nokia reports 66% profit loss in second quarter

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Nokia reported today that its second-quarter earnings dropped 66% from last year. Its net profit has dipped to $535 million from $1.5 billion, and sales have shriveled by 25% to $14 billion. Analysts predicted a profit of $462 million, and sales of $14.27 billion.

The Finnish handset maker shipped 103 million mobile devices throughout the quarter, 15% less than last year – but higher than some analysts foresaw. The company’s average price for a handset also fell, from $105 to $88. While the figures are looking grim compared to those of a year-ago, they are an improvement over the first quarter of this year.

According to Nokia CEO Olli-Pekka Kallasvuo, the company performed well in a tough quarter. He said Nokia is accelerating its transformation into a “solutions company” that offers more than just cell phones – which is probably where things like their Ovi Store come in. Kallasvuo feels that the mobile industry is seeing its biggest change of the last 20 years.

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