Nokia reports £467 million loss in Q3

Nokia reported its sixth straight quarterly loss this morning when it published its financial results for the third quarter of 2012. It recorded an operating loss of $754 million (£467 million) and net sales worth $9.49 billion (£5.88 billion).

The financial shortfall is being attributed to the under performance of Nokia’s Lumia devices. It has only managed to sell 2.9 million which has dropped down from the previously registered 4 million units sold in the last quarter.

That is a decrease of 27.5 per cent, a number that is compounded by an overall 63 per cent drop in smartphone sales (6.3 million units).

These numbers highlight the importance of the Lumia line to Nokia, which must be hoping to recoup its losses with the launch of the Windows 8 compatible Lumia 820 and 920.

However, the drop in sales revenue was not unforeseen as Nokia’s chief executive Stephen Elop explained, “As we expected, Q3 was a difficult quarter in our Devices & Services business; however, we are pleased that we shifted Nokia Group to operating profitability on a non-IFRS basis.”

“In Q3, we continued to manage through a tough transitional quarter for our smart devices business as we shared the exciting innovation ahead with our new line of Lumia products.

"In our mobile phones business, the positive consumer response to our new Asha full touch smartphones translated into strong sales. And in Q3, our mobile phones business delivered a solid quarter with sequential sales growth and improved contribution margin.”