Mobile phone giant Nokia posted a loss of 368 million Euros or $523 million in the second quarter as the company’s sales slipped.
This compared to a a profit of 227 million Euros or $323 million during the same period a year ago. Sales feel about 7 percent during the quarter to 9.3 billion Euros or $13 billion. The previous year, Nokia reported revenue of 10 billion or $14 billion.
Nokia’s losses and weak sales were expected. The company has been facing stiff competition from Apple and Google in the high-end smartphone category. And it’s been getting squeezed at the low-end by Asian manufacturers, such as ZTE.
Nokia is currently in the middle of a transition to get its strategy back on track. The company is moving away from building smartphones that use its Symbian operating system toward devices that use Microsoft Windows Phone software.
The company is expected to release the first Windows Phone devices later this year. But it won’t ship these devices in volume until 2012, the company has said.
Still, CEO Stephen Elop said in a statement that Nokia is making better-than-expected progress toward its strategic goals.
“While our Q2 results were clearly disappointing, we are executing well on the initiatives that are most important to our longer term competitiveness,” he said in a statement. “Some progress is already evident, and thus we are targeting to end this year with more net cash and liquid assets than at the end of Q2 2011. We firmly believe that our deliberate and unwavering commitment to making the changes necessary at Nokia is the right way to deal with the disruptive forces in our industry and drive value creation for our shareholders.”
Read more: http://news.cnet.com/8301-30686_3-20081355-266/nokia-reports-big-q2-losses-but-ceo-notes-progress/#ixzz1Skf487Eg