Nokia shares suffer on sales drop
Nokia’s operating losses in 1H and 2Q13 fell year-on-year, but the success is marred by a slump in device sales over both periods.
The Finnish vendor cut losses from €2.1 billion in 1H12 to €265 million in 1H13, and from €824 million in 2Q12 to €115 million in the recent quarter. However, it reported weaker than expected device sales, recording a 32% year-on-year fall in 2Q and 1H figures. Nokia’s Here unit achieved modest reductions in its operating losses in each period, while Nokia Siemens Networks maintained its profitable run across the two periods.
Chief executive, Stephen Elop, said the firm “benefited from another strong performance at Nokia Siemens Networks, which continued to deliver well against its focused strategy,” and that the device business “started to demonstrate some signs of recovery in the latter part of the second quarter.”
Analysts weren’t dazzled by Elop’s focus on underlying profitability, with one telling Bloomberg lower sales is the key message in Nokia’s results.
The firm’s share price took an immediate hit after it reported the figures, as markets reacted to the drop in handset sales, the BBC reports.
Samsung has also suffered a recent drop in share price after predicting lower than expected profit and sales for 2Q13, and HTC suffered an 83% drop in net income, as sales of its high end One smartphone fell short of forecasts.