Nokia Reports Q2 Earnings: Net Sales At €5.7 Billion, 7.4 Million Windows Phone Handsets Sold, Operating Loss Of €115 Million
Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) has reported their second quarter earnings this morning. Nokia’s Devices and Services division fell 6% quarter-over-quarter to €2.7 billion. Nokia’s Lumia Windows Phones sales grew 32% quarter-over-quarter to 7.4 million handsets. The net sales for the quarter was €5.7 billion (down 24% from last year). Nokia posted an operating loss of €115 million. Nokia was able to narrow their deficit €824 million from Q1 2013.
Nokia continues to struggle against companies like Samsung and Apple, but Nokia’s smartphones grabbed an 85.4% market share for Windows Phones. But the overall market for Windows Phone in the United States fell to 3% from 3.2% in the February-May 2013 quarter. Apple has a 39.2% market share and Google Android has around 52.4%.
Nokia’s Nokia Siemens Networks has operating margins at 11.8%, which is above the 5% that Nokia was expecting. Nokia’s handset division has operating margins at negative 1.2% though.
Nokia bought Siemen’s 50% stake in the joint venture this past quarter. Nokia chief executive officer Stephen Elop plans on “strengthening Nokia Siemens Networks as a more independent entity.”
Nokia’s net cash reserves fell to €4.1 billion from €4.5 billion in Q1.
“Our mobile phones business unit started to demonstrate some signs of recovery in the latter part of the second quarter following a difficult start to the year,” said Elop. “While we are very encouraged by the consumer response to our innovations in this price category, our Mobile Phones business unit is planning to take actions to focus its product offering and improve product competitiveness.”