Nokia has made a loss for the third quarter of this year – but it’s not as big a loss as expected and the company has the humble “dumb phone” to thank.
The Finnish giant had been expected to post a surprising loss for Q3, but thanks to better than expected sales of basic handsets, the company squeaked through with an earnings per share of €0.03 compared to a predicted loss per share of €0.01. However it reported an operating loss of €71m compared to an operating profit of €403m in the same period last year.
Analsysts predicted sales of between 67m and 86.7m basic phones in the three month period to the end of September but Nokia reported sales of 89.8m handsets.
It has been left fighting a losing battle in the smartphone market with its Symbian software paling in comparison to iOS and Android in smartphone terms. However, Microsoft’s president of Windows Phone, Andy Less has confirmed that Nokia’s first phones running the Windows Phone software will arrive at Nokia World in London next week.
The sale of almost 90m basic handsets in Q3 was a 25 per cent jump compared to the previous quarter, while its smartphone sales remain almost stagnant with just a one per cent rise.
However looking at the overall total compared to last year, the landscape does not look so sunny. In total Nokia sold 106m handsets in the last three month which is a 38 per cent decerease compared to the same period last year.
"I am encouraged by our progress around the first Nokia experience with Windows Phone," Nokia boss Stephen Elop said. "We look forward to bringing the experience to consumers in select countries later this quarter."
Speaking about the thousands of job cuts taking place as part of the company’s €1bn dollar cost-saving drive, Elop said: “The planned changes we have initiated are difficult, but necessary in order to align the company to our strategy."
Nokia is renowned for the huge number of patents it holds, and as a result is receiving royalty payments from a number of companies, most notably Apple, who last quarter contributed more than half of Nokia’s mobile operating profit in royalty payments.
We’ll be on the ground at Nokia World in London next Wednesday to bring you all the details on Nokia’s new Windows Phone handsets so stay tuned.