News Column

Nokia Narrows Losses Despite Tumbling Sales Background

July 18, 2013

Nokia narrowed its loss to $298 million (227 million euros) in the second quarter as lower expenses for taxes and product development outweighed a sharp drop in sales, the Finnish mobile phone maker said Thursday.

The company reported a net loss of 1.41 billion euros in the same period last year.

Revenue fell 24 per cent year-on-year to 5.7 billion euros as the average prices of its products inched lower and the number of sold mobile phones dropped 27 percent to 61.1 million units.

The decrease in business was most dramatic in China, Hong Kong and Taiwan, where unit sales of mobile devices nearly halved.

Only Nokia's Lumia range of smartphones improved its sales by nearly a third to 7.4 million units.

Nokia's operating loss shrank to 115 million euros from 824 million euros a year earlier.

The improvement was largely due to deferred tax payments worth 800 million euros and to lower research and development expenditures.

Nokia shares fell 4.2 percent in afternoon trading on the Helsinki stock exchange.

The company said it planned to step up cost cutting at its telecommunications network supply subsidiary Nokia Siemens Networks after the announcement this month that it would end its joint venture with the German Siemens group.

Nokia joined forces with Microsoft in developing the Windows platform for mobile phones in 2011 to regain market shares from rivals Apple and Samsung.

However, Windows smartphones made up only 2.9 percent of the market early this year, according to market researchers.

Source: Copyright 2013 dpa Deutsche Presse-Agentur GmbH

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