Nokia Posts Negative Results, Loss of €368 Million and 32% Drop in Smartphone Sales

Finnish mobile phone maker Nokia has posted a loss of €368 million in the second quarter of 2011.

The company, which had posted profits of Euro 227 million in the same quarter a year ago, informed that the sales fell by 7 percent to Euro 9.3 billion. Nokia had already predicted a poor second quarter due to a drop in sale.

Nokia has been losing smartphone market share to Android and Apple for some time now and has joined hands with Microsoft to make devices based on Windows Phone 7. In the second quarter, Nokia’s revenue from smartphone sales dropped by 32 percent to Euro 2.37 billion.

“The challenges we are facing during our strategic transformation manifested in a greater than expected way in Q2 2011m,” Nokia CEO Stephen Elop said in a statement.

“However, even within the quarter, I believe our actions to mitigate the impact of these challenges have started to have a positive impact on the underlying health of our business. Most importantly, we are making better-than-expected progress toward our strategic goals,” he added.

Despite the poor quarter, Nokia maintained that its smartphone and mobile phone divisions were moving ahead as planned.