FINNISH PHONE FIRM Nokia is continuing to lose money as it hangs on for dear life.
In its latest financial results it posted a third quarter net loss of $1.27bn, more than anyone was expecting. The news is likely to raise questions about whether the firm needs a change at the top, or rather, another change at the top.
Still, Nokia CEO Stephen Elop does not seem too fazed. "In Q3, we continued to manage through a tough transitional quarter for our smart devices business as we shared the exciting innovation ahead with our new line of Lumia products. In our mobile phones business, the positive consumer response to our new Asha full touch smartphones translated into strong sales. And... our mobile phones business delivered a solid quarter with sequential sales growth and improved contribution margin," he said.
"While we continue to focus on transitioning Nokia, we are determined to carefully manage our financial resources, improve our competitiveness, return our Devices & Services business to positive operating cash flow as quickly as possible, and ultimately provide more value to our shareholders."
Nokia used to be a major player in the mobile phone market, but it has lost out to Apple's Iphone and Android based handsets. It does have a deal with Microsoft, and it is possible that this could turn round its fortunes, but for now its financial statement makes for uncomfortable reading.
A table marked Smart Devices Results Summary could give some analysts nightmares. It shows that net sales have decreased by 56 percent year on year, and that volume has fallen by 63 percent. However, the firm did say that the steep decline in sales was in part offset by higher average selling prices.
Sales of mobile phones fell by 19 percent year on year, and geographically the firm did badly in all regions except Latin America. Although its sales grew in Latin America by 14 percent, sales fell by 29 percent in Europe, 78 percent in Greater China and 51 percent in North America. µ