Nokia Posts $1.2B Loss
Sales of the new Lumia 900 seems to be going well in the US, but Nokia had bad news for the market, posting a $1.2B loss for the first quarter of 2012:
Nokia Posts $1.2 Billion Loss as Sales Drop 29% - Kevin J O’Brien via NYTimes.com
Sales in Nokia’s core devices and services division, which generates up to 60 percent of total sales, fell 40 percent in the quarter, to 4.24 billion euros ($5.6 billion), from 7.1 billion euros ($9.3 billion). Sales of smartphones fell 52 percent in the period, to 1.7 billion euros ($2.2 billion), from 3.5 billion euros ($4.6 billion), reflecting that consumers are ignoring the older Symbian-based phones.
Basic cellphones sales, which account for the bulk of Nokia’s handset business, also fell, amid rising competition from low-cost Asian rivals and pressure from Chinese mobile network operators, which are aggressively discounting the prices of basic phones. The average price for a basic Nokia phone fell 18 percent, to 33 euros ($43), from 40 euros ($52), a year earlier.
In related news, Nokia is no longer the highest valued Finnish company, given this fall in value. Fortum, an electric utilities company, is now in that spot. Henry Blodgett thinks Nokia could go bankrupt.