Nokia Reports $1 Billion Loss in Q2 2012 Earnings
It's been a very rough ride for Nokia over the last couple of years. Since losing market share to the Apple iPhone and Google's Android smartphones, Nokia has been in a 'burn' state. They aren't the only ones going through this burn either, as we constantly hear about Research In Motion's difficulties in turning the ship around into more prosperous seas.
Nokia started a relationship with Microsoft, in early 2011, to start building Windows Phone 7 devices in an attempt to build business again and gain market share. Since the launch of the "Lumia" devices featuring WP7, Nokia has managed to ship over 4 million smartphones worldwide, which also includes their existing Symbian and MeeGo devices. Not bad at all, until you see what it cost them. After this latest earnings release from Nokia for Q2 2012, we can see the cost, to the tune of a loss of $1 Billion.
Stephen Elop, Nokia's CEO, had the following to say regarding the earnings release;
Nokia is taking action to manage through this transition period. While Q2 was a difficult quarter, Nokia employees are demonstrating their determination to strengthen our competitiveness, improve our operating model and carefully manage our financial resources. We shipped four million Lumia Smartphones in Q2, and we plan to provide updates to current Lumia products over time, well beyond the launch of Windows Phone 8.
The report is not a positive one for Nokia, but at least they have the future release of Windows Phone 8 on the horizon. WP8, along side Windows 8, is gaining popularity in the technology sector for its intuitive design and interfaces. Time will tell if Nokia's patience will pay off.
Source - Nokia