Nokia are hanging on by the skin of their teeth after the latest results show a loss in Q3 of $1.7 billion. This is a lot more than most people expected and leads to the question of whether they need yet another change at the top reports The Inquirer.
Nokia Lumia 920 revolutionary but company not in good state
The CEO however did not seem to be too bothered by the results and said that they had managed to get through what was a touch transitional quarter in their smartphone business; and they have come out and shared the innovation thanks to their Windows Phone handsets like their flagship Nokia Lumia 920.
The Nokia CEO also went on to say that the Asha touchphones translated into what should be strong sales. And finally the sector of handsets delivered what could be called a solid new quarter, which saw sequential growth in sales and an improvement in contribution margins.
He went on to say that they were focusing on the transition of Nokia and that they were determined to manage their finances and improve their competitiveness. This he said would see their Devices and Services business returning to a positive cash flow, which would mean better value for the shareholders.
At one time Nokia were ahead in the smartphone game, however they were overtaken by Apple and Android handsets. They currently have a deal with Microsoft and they could turn around, however their financial statements doesn’t make comfortable reading despite the latest Nokia Lumia 920 appearing to be a serious contender to the reigning iPhone 5 and Samsung Galaxy S3.
The results could ensure that analysts have nightmares as they have shown that net sales have dropped 56% year on year and overall volume has dropped by 63%. Nokia did say that they decline in sales was steep but was offset by their higher than average prices for sales.
Sales of their handsets have fallen by around 19% year on year and they did very badly in virtually all regions apart from Latin American. Meanwhile sails of devices in Latin America grew by 14%, while sales fell in Europe by 29% and in Greater China 78%, North America saw as 51% drop.
The Nokia Lumia 920 launches this week and is priced slightly above the Android Samsung Galaxy S3 but below Apple’s iPhone 5.