Financial News

  • 24 January 2014, 9:26

Nokia Sales Drop By 29% In Last Three Months

Struggling handset maker Nokia has seen its smartphone sales plunge 29% in the last quarter.

The Finnish company said its overall business made a net loss of ?25m (20m) in the final three months of 2013.

The company said its Lumia smartphones failed to draw business away from larger competitors such as Apple and Samsung.

The decline hit the sector that Microsoft is due to take over.

The devices and services unit being bought by Microsoft saw total sales fall to ?2.6bn (2.13bn) from ?3.7bn (3bn) a year earlier.

The unit recorded an operating loss of ?191m (156m) compared with an operating profit of ?97m (80m) in the fourth quarter of 2012.

Nokia revealed sales of 30 million Lumia handsets throughout 2013.

The figure was double that of 2012 but it failed to pose a challenge the dominant brands of Apple and Samsung.

Once the global mobile phone leader, Nokia teamed up with Microsoft in 2011 in hopes of a turnaround.

But it has suffered further damage from lower cost phones developed in China and elsewhere in South East Asia.

In 2013 Nokia agreed to a handset unit sale to Microsoft valued at the time at 3.7bn.

Shareholders approved the deal and it is expected to be completed before April. The company will focus on intellectual property in future.

"During the fourth quarter, Nokia's continuing businesses produced a healthy underlying operating margin of 12%," CEO Risto Siilasmaa said.

"While the first quarter of the year is seasonally weak for our continuing operations, we continue to expect the closing of the Microsoft transaction to significantly improve Nokia's earnings profile."

Nokia's retained operations, which include solutions, networks, mapping services and advanced technologies, also saw sales slump to ?3.4bn (2.8bn) in Q4 - down 21% from a year earlier.

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