Nokia suffers Q2 losses despite popularity of Lumia phones

2013-07-18 13:36:53 GMT2013-07-18 21:36:53(Beijing Time)  Xinhua English

HELSINKI, July 18 (Xinhua) -- Despite the rise in sales of the Lumia smart phones, Nokia suffered an operating profit loss of 115 million euros in the second quarter of this year, the Finland-based mobile phone manufacturer said on Thursday.

Nokia's share prices fell as much as five percent in the Helsinki Stock Market soon after the release of the unsatisfying report.

According to the report, the company's net sales, which stood at 5.7 billion euros, was also down by 24 percent from 7.5 billion euros in the same period of 2012.

The sales volume of Lumia, Nokia's flagship series, increased to 7.4 million, almost doubling that of the same period of last year. But the figure was lower than the previous forecast of 8.1 million units.

In total, the company sold 7.4 million smart devices in the second quarter this year, 21 percent more than last quarter, but down by 27 percent compared with the second quarter of 2012.

Nokia's CEO Stephen Elop seemed proud of the performance of Lumia phones. He expected that the new Lumia products "will drive a significant part of our Smart Devices revenue" in the third quarter.

Last week, Nokia announced the latest Lumia 1020, which features the unprecedented sharpness of camera focusing.

Thursday's report also said that Nokia Siemens Networks gained a profit of 8 million euros, compared to a loss of 226 million euros in the same quarter of 2012.

In the beginning of July, Nokia announced that it will buy Siemens' NSN stake for 1.7 billion euros, a decision believed to further strain its balance sheet.

According to the report, Nokia's net cash fell to 4.1 billion euros compared with 4.5 billion euros in the previous quarter.

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