Nokia's late transition towards smartphones has resulted in disappointing figures for the Finnish company, at least for the first quarter of this year. It seems Nokia has experienced a significant £1.05 billion drop in profits, mostly due to tight competition.
The most alarming figure stated by officials is the 30 per cent decrease in total revenue, from the £8.44 billion mark registered in the same quarter of the past year, to approximately £6.02 billion.
Smartphone sales dropped 52 per cent from last year, with the company managing to sell only 1.7 billion units - whilst net device sales plummeted 40 per cent to 4.2 billion units.
Stephen Elop, Nokia's CEO, explained the drop as navigation "through a significant company transition in an industry environment that continues to evolve and shift quickly". Meanwhile, Elop adds that "Over the last year we have made progress on our new strategy, but we have faced greater than expected competitive challenges."
Although the competition has always been stiff in the smartphone business, Nokia may rejuvenate its figures with the successful launch of the Lumia 900, a handset that has reportedly experienced popular sales. Also, its whole Lumia family sold two million units in the first quarter of 2012.
Nokia stocks have been trading for £3.04 this morning on NASDAQ (NOK), with this number expected to drop even lower as Colin Giles, executive vice president of sales, has resigned.