Nokia posts $754 million loss for Q3 as Lumia sales decline

By on October 18, 2012, 10:30 AM

Stephen Elop was faced with the monumental task of reversing Nokia’s misfortunes when he took over as CEO in early 2011. Unfortunately for the Finnish handset maker, things are still looking bleak as the company reported its sixth straight quarterly loss on Thursday.

Nokia recorded a loss of $754 million for the third quarter of 2012 which in actuality is an improvement over the past year. In Q4 2011, the company lost $1.3 billion, a figure that inflated to $1.6 billion in Q1 2012. Nokia trimmed the loss to just $1.1 billion last quarter and managed to stay under the $1 billion mark the past three months.

It’s pretty impressive that Elop was able to cut losses despite a significant decline in Lumia smartphone sales. Nokia moved four million handsets last quarter compared with just 2.9 million during the most recent quarter. A reduction in sales isn’t a surprise considering existing models are reaching the end of their life cycle.

Overall, Nokia managed to move 77 million handsets (a figure that includes their entire catalog of phones). This is up from 73 million mobile phones in the previous quarter. Notably, 6.5 million of these phones were of the new Asha smartphone variety.

A bevy of new Lumia-branded smartphones are expected to hit the market starting next month. Whether or not consumers will scoop them up in droves, however, remains to be seen.

Nokia is certainly hoping that Windows Phone 8 handsets will be what they need to break into the US market in a serious way. Of course one has to wonder just how detrimental the exclusive partnership with AT&T on the Lumia 920 will be towards that goal.




User Comments: 13

Got something to say? Post a comment
Guest said:

Good choice for choosing the Microsoft OS for your phones. That worked out well.

VitalyT VitalyT said:

Well done! (with irony)

I thought they would disappear into oblivion when they tried to push for reincarnation of Symbian before going for Windows Mobile. And just as they came up with the first Windows 8 Mobile phones, MS kicks them in the ballz with their own mobile phones. What a nasty web MS weaves these days...

Guest said:

I think its amazing these companies like Nokia just keep burning through the billions in loses. Does this actually mean "dollars" or something else? If you added up the losses, it comes out to an ENORMOUSNESS amount of actual cash and I can't imagine they have this amount just sitting in a bank account.

Guest said:

Only blame yourselves Nokia for going with Windows instead of android. The M$oft Zune died and so will the Lumia. Very unfortunate for such a quality company,

Det Det said:

In Finland this was phrased as an "amazingly good result": [link]

Teko03 said:

Nokia will be see huge profits once the Lumia 920 debuts on all major car....oh wait, they have an exclusive contract with AT&T, the home of the iPhone. Unless AT&T paid enough to cover all their losses, Nokia is done for. the 920 & 820 needed to be placed on Verizon, Sprint, T-Mobile & AT&T. No variants --- no need to waste money on delivering variants --- two handsets, all four major US carriers...simple as that.

Det Det said:

From Google Translate: [link]

dennis777 dennis777 said:

I still thinks nokia's phone is doing much better than a blackberry

Tekkaraiden Tekkaraiden said:

I still thinks nokia's phone is doing much better than a blackberry

Better maybe but I wouldn't say much better.

Darth Shiv Darth Shiv said:

Only blame yourselves Nokia for going with Windows instead of android. The M$oft Zune died and so will the Lumia. Very unfortunate for such a quality company,

You did see that they are reversing their losses quite significantly?

1 person liked this | Guest said:

The Limia is a great phone. The best I have used.

Alas who's going to buy the existing one when they know Windows 8 is coming. Seems like strange timing but once they settle I am sure fortunes will turn.

Android is limited and naff and the iPhone has nowhere to go. Things will look very different in a 3-5 years which is where Nokia has set it's sights.

Guest said:

Their biggest mistake is limited to Windows Phone 8, bad managment and not market enough. I don't think I have even seen Windows Phone 8 on TV or somewhere in my area (Kansas). They will profit if they sell more than just limited to Windows Phone 8 such as add Android, perhaps even license Blackberry 10 and other OSs.

Load all comments...

Add New Comment

TechSpot Members
Login or sign up for free,
it takes about 30 seconds.
You may also...
Get complete access to the TechSpot community. Join thousands of technology enthusiasts that contribute and share knowledge in our forum. Get a private inbox, upload your own photo gallery and more.