Nokia sees $1.7 billion Q1 loss, executive VP of sales steps down
Nokia had a terrible Q1--will the Lumia line and Microsoft partnership help?
Nokia predicted its Q1 figures would be bad, and now that those numbers are public, it's a little worse than we imagined. Smartphone sales are down 52 percent in the first quarter, along with a $1.7 billion net loss. During Q1 2011, Nokia posted approximately €10.4 billion in net sales, which is €3 billion more than Q1 2012 for a 29 percent year-over-year change.
What does CEO Stephen Elop, who was hailed by some as Nokia's savior, have to say about this?
“We are navigating through a significant company transition in an industry environment that continues to evolve and shift quickly. Over the last year we have made progress on our new strategy, but we have faced greater than expected competitive challenges.
It's true that going through a major transition in an industry that evolves quickly is difficult. Surprisingly, Nokia managed to crank out a few decent Lumia handsets, all of which were, according to Elop, ahead of schedule.
Despite the modestly successful Lumia 900, Nokia predicts equally poor Q2 results with no mention of what will happen during the second half of 2012. What's worse for fans of the Windows Mobile platform is that the current crop of Lumia handsets won't have the hardware necessary to upgrade to Apollo, the next major iteration of Windows Phone 7.
At the very least, Nokia received $250 million from Microsoft as a "platform support payment." Perhaps better would have been support for future versions of Microsoft's mobile platform on Nokia's current crop of Windows Phone hardware.
With failure to gain better traction, and a lack of faith from European mobile operators, it's hard to see how Nokia will dig itself out of this hole. As a result of poor sales and net losses, Executive Vice President of Sales, Colin Giles, has stepped down from his position.