Nokia reports Q2 results: Sells 88.5 million devices and declares net loss of 368 million euros

Ian Hardy

July 21, 2011 7:51 am


It’s actually fascinating to watch Nokia unfold before us. Over the past year they brought on a new CEO, Canadian-born Stephen Elop, to run the show. Soon after Elop showed up the layoffs started to refocus the company, a massive announcement was made that shifted their devices to be mainly powered by Microsoft’s Windows Phone platform, and also introduced a slight re-branding effort. In addition, a patent infringement case with Apple was settled that will see Apple pay Nokia on-going royalties.

In the background of all this transition there’s still a business that’s bleeding money. Nokia declared their Q2 results today and racked up a net loss of 368 million euros ($521 million USD), sold 88.5 million handsets 20% less than the same quarter last year. Stephen Elop noted that “The challenges we are facing during our strategic transformation manifested in a greater than expected way in Q2 2011. However, even within the quarter, I believe our actions to mitigate the impact of these challenges have started to have a positive impact on the underlying health of our business.

Nokia is expecting to start shipping their first Windows Phone later this year, but no word on when it will be available in Canada.

Source: Nokia
Via: IntoMobile & Bloomberg

  • outsider

    Let Nokia die, and take Microsoft with them. The mobile ice age has cometh and these 2 need to be extinct already. How long can they fight the inevitable?

  • cybik

    There’s a Canadian I’m not proud of.

    • mda

      Let’s see you take over a sinking company and bring it back to the top in less one year.

  • Reggie Noble

    I was reading a list of the Top 10 Companies that will die in 2012. Nokia was on the list.

    Blockbuster was number 1 if you were interested in knowing.

  • Max T

    I disagee. I think Nokia and Microsoft strategic partnership will bring much benefit to Nokia. They won’t sell enough to be profitable, but they will make a WP7 branding stamp, and will continue to grow this way.

    • mda

      Combine all best specs of Nokia and put in android and you’ll have the Samsung galaxy s2 jealous.

  • Kenypowa

    should have gone with Android.

    • DJM

      Agreed. Nokia have solid devices, it’s just their OS that fails. Would have liked to have seen an Android powered Nokia. It would help them greatly.

    • Jota Efe

      Should have gone with Meego

  • Len

    The longer it takes for them to die the longer we have to tolerate hold outs. Theres always fanboys no matter how inferior a product may be, and of course companies such as Telus has for some reason decided to push WinMo a bit harder then it should. Once their gone they can make room for other products to succeed. Sadly, Nokia and MS just don’t know how to just accept their loss and go away.

  • Angus

    This ship is sinking, maybe pump the water out faster? Where the hell is the lineup of high spec Windows phone 7 handsets?

  • Jim

    Nokia could have gone with Android Powered phone but would have paid Microsoft $15 a phone for patent royalties with NO Microsoft support or interest. Or, as they did, went directly to Microsoft and paid them $15 a phone and get Microsoft support and interest. Either way Microsoft makes $15 a phone they would sell – MS or Andriod. For a large company like Nokia it is much better to have an strategic alliance with both parties using each others strengths. Also with such a large volume of phone Nokia might even get a price break from Microsoft – not necessarily the case when you are forced to pay patent royalties.

    Personally I thought nokia was large enough that they could have re-written there phones OS internally. They must have too many entrenched executives set in there ways to make the dramatic OS updates demanded by today’s customers. It is easier to by-pass them by outsourcing the OS to Microsoft and let these entrenched executives can ‘retire’. Then in 5 years start up a new OS division with energetic blood and innovative minds to do an dramatic update of there old OS.

  • Joe

    They actually made a loss of almost 800 million euros if you factor out the patent royalty payment from Apple.

    Personally, I think neither WP7 nor Android are right for Nokia. Just look at how good the N9 looks with MeeGo. Their CEO however refuses to sell it in any big markets no matter how well it will do. They should really fire the guy.

    • Max

      I agree with you, Meego looks amazing and works even better. But if he did pick Meego, I bet a lot people would have complained about Apps. There wouldn’t be any end to it.

      Personally, I would buy the N9 when it launches.

      And the losses are probably even more than 800 Million cause they already get Royalty payments from other manufacturers.

  • Eli

    Honestly I think both Nokia and RIM need to embrace Android.

  • Stuntman

    I think Nokia didn’t want to be another follower of Android like Samsung or HTC. They want to be a dominant player again like they were 10 years ago. They did not see that happening if they went with Android. MS gave them a deal that allowed them to lead. Nokia is able to customise WP7 and be a leader. Google would not allow Nokia the same advantage.

    If Nokia went with Android, they will probably become a much smaller and different company than what Nokia wants to be. Going with WP allows Nokia to take better advantage of their assets.

    I would have liked to see Nokia go with MeeGo or even Android instead of WP. I think Elop did not feel that MeeGo will be developed fast enough to allow Nokia to release enough handsets. The preview of the N9 and N950 leads me to believe otherwise. So far, we have seen more of these units than the W-series phones. It’s hard to say for sure since Nokia is keeping things under wraps and probably strategically leaking stuff out.

    I personally want Nokia to go Android. I think Nokia can make really good Android phones. I’m rather skeptical that Nokia even with the ability to customise WP can succeed. They had all the ability to do that with Symbian/MeeGo and I have yet to be really impressed with their results so far.

  • Bruce

    There are too many android phones in the market. I see little profit/potential in the android phone market for Nokia.

    I think WP7 is a good move.
    Nokia should focus on the hardware while Microsoft focus on software.
    Use WP7 to enter the casual smartphone users’ market.

    And symbian will focus on business/corporate users’ market (RIM’s market). Make an Ovi messenger or something… Keep the E, N series.