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Nokia reports Q1 loss as sales of less sophisticated phones slips

Nokia reports Q1 loss as sales of less sophisticated phones slipsReporting disastrous first-quarter results on Thursday, Finnish handset-maker Nokia said that a 29 percent plunge in the company’s sales had resulted in a loss of €929 million ($1.2 billion), as compared to a €344 million profit during the same quarter last year.

With demand for Nokia’s Symbian-based smartphones and the less sophisticated phones slipping during the quarter, the company – which is currently in the process of reinventing its handset business around Microsoft’s Windows Phone mobile OS – said that its first-quarter sales plunged to €7.4 billion, from the last year figures of €10.4 billion.

Even though weak handset sales led to a first-quarter loss for Nokia, the company’s quarterly loss figures were further exacerbated by a €772 million restructuring charge undertaken by Nokia Siemens Networks - its loss-making network equipment joint venture with Siemens.

While Nokia has already warned the investors last week that it would be reporting its first-quarter loss, and also that it expects a loss for the second quarter as well, the company is, nonetheless, making attempts to offset the financial downturn at the earliest.

According to Nokia’s president and CEO Stephen Elop, Nokia is not only pressing ahead with “substantial” additional cost-cutting, but is also rapidly launching its Lumia handsets into new markets.

Though acknowledging that Nokia was “disappointed” with its first-quarter performance, Elop said during a recent interview: “At the same time, the numbers mask the totality of what we have accomplished. Lumia is up and running in the U. S. A. We are clearly in the heart of the transition.”