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Nokia shares plummet after Q1 decline in handset shipments

Despite a rise in sales of its flagship Lumia smartphones, Nokia saw its feature phone shipments tumble in the market, leading it to report yet more operating losses.

During the first quarter of 2013, the Finnish phone firm recorded losses amounting to €339 million (£290 million). That figure is a significant improvement from the €1.57 billion (£1.34 billion) loss reported during the first quarter of 2012.

Shipments of Lumia handsets jumped by 27 per cent to 5.6 million units during the first few months of the year. However, that did not stop the overall volume of mobile sales to drop by approximately a third to 55.8 million units. Accordingly, Nokia’s revenue dropped, too - the company brought in €5.85 billion (£5 billion) during Q1, down from €7.35 billion (£6.3 billion) during the same period in 2012.

"We have areas where we are making progress, and areas where we are further increasing the focus. For example, people are responding positively to the Lumia portfolio, and our volumes are increasing quarter over quarter," said Nokia boss Stephen Elop.

"On the other hand, our Mobile Phones business faces a difficult competitive environment, and we are taking tactical actions and bringing new innovation to market to address our challenges," Elop added.

News of the quarterly results sent Nokia stock falling, with shares dropping by as much as 13 per cent earlier today.