Nokia Takes 2Q Hit on Weak Device Sales
Sliding device sales resulted in a fairly flat second quarter for Nokia. The Finnish phone maker reported sales of $7.4 billion, down three percent quarterly and 24 percent annually. Contributing to the lackluster revenue was a reported $3.5 billion in device sales, down six percent quarterly and a whopping 32 percent annually.
A big factor in the somewhat weak device sales was slumping feature phone sales, down 12 percent quarterly and 39 percent annually. It’s been a common theme for Nokia as the company has lost ground in feature phone-heavy emerging markets to OEMs like Samsung.
But Nokia’s smartphone sales held steady quarter-over-quarter and the company has reason to be cautiously optimistic about its Lumia line of Windows phones. The handset manufacturer has conjured some genuine excitement with the announcement of the Lumia 1020, a Windows 8 phone featuring the second-generation of Nokia’s 41-megapixel PureView camera.
Nokia noted that Lumia volumes had swelled to 7.4 million in the second quarter, the highest they’ve ever been.
Nokia CEO Stephen Elop was encouraged by the performance of Nokia Siemens Networks, which posted steady quarterly sales and a non-IFRS operating margin of 11.8 percent.
“With our recent announcement to purchase Siemens’ 50% stake in Nokia Siemens Networks, we believe we will create value for Nokia shareholders and look forward to strengthening Nokia Siemens Networks as a more independent entity,” Elop said in the release.
In the U.S. in pre-market trading, Nokia shares were down nearly four percent as of 8:09 a.m. CT.