Lumia growth fails to arrest Nokia slump

Finnish mobile stalwart Nokia continues to wade through troubled waters as its second quarter financial report recorded declines in sales revenue and shipments from last year.

The company’s position has been deteriorating steadily since rival manufacturers Apple and Samsung began to steal vast swathes of market share, and while its Lumia smartphone line is showing promising growth, the overall picture remains bleak.

Nokia reported sales of 5.69 billion euros (£4.92 billion) for the three months ending June 2013, the figure dropping 24 per cent from the same period last year.

Q2 saw the firm ship 53.7 million mobile phones, falling by a significant 27 per cent on 2012.

Better news arrives for Nokia when homing in on its Windows Phone-running Lumia range, which shifted 7.4 million units – up 21 per cent from the 6.1 million sold in the first quarter.

CEO Stephen Elop said this demonstrated “increasing momentum for the ecosystem” and earmarked further growth in the segment through 2013. “During the third quarter, we expect that our new Lumia products will drive a significant part of our Smart Devices revenue," he said.

Nokia’s latest report echoes the relative disappointment of its Q1 results, when operating losses of £290 million were recorded. But Elop was determined to place a positive spin on its company’s fortunes this time around, citing positive developments in its partnership with Siemens.

"We're pleased to report an underlying operating profit for the fourth consecutive quarter on a group level. We benefited from another strong performance at Nokia Siemens Networks, which continued to deliver well against its focused strategy,” Elop said.

“With our recent announcement to purchase Siemens' 50% stake in Nokia Siemens Networks, we believe we will create value for Nokia shareholders and look forward to strengthening Nokia Siemens Networks as a more independent entity.”

As its Lumias continue to show the greatest promise, Nokia is banking on the new Lumia 1020 to snaffle further market share in the smartphone wars. We enjoyed some hands-on time with the Nokia Lumia 1020 this week and saw whether the fuss around its whopping 41-megapixel camera was justified.

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