Nokia Q1 Financial Earnings Disappointing Despite 2M Lumias Sold
By on April 11th, 2012

In a press release today, Nokia announced that it has sold over 2 million Nokia Lumia handsets in Q1 2012, but despite this, the company is still falling short when it comes to financials:

“Our disappointing Devices & Services first quarter 2012 financial results and outlook for the second quarter 2012 illustrates that our Devices & Services business continues to be in the midst of transition,” said Stephen Elop, President and CEO of Nokia. “Within our Smart Devices business unit, we have established early momentum with Lumia, and we are increasing our investments in Lumia to achieve market success. Our operator and distributor partners are providing solid support for Windows Phone as a third ecosystem, as evidenced most recently by the launch of the Lumia 900 by AT&T in the United States.”

Nokia also updated its outlook for Devices and Services in Q1 2012, going from expecting a breakeven non-IFRS Devices & Services operating margin to expecting one of approximately negative 3%. The company’s outlook on Q2 2012 is also bleak; Nokia expects that its non-IFRS Devices & Services operating margin will be similar or below that of Q1.

The Lumia 900 — which was launched on April 9th — is pegged to be a flagship Windows Phone device that will hopefully drive more sales to the platform. Many buyers of the device have reported a strange data connectivity issue, which was quickly identified as a problem with the software. A fix will be pushed out shortly, and AT&T is offering a $100 credit to Lumia 900 owners affected by the problem.

 

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Author: Paul Paliath Google Profile for Paul Paliath
I founded and regularly wrote blog posts on GeekSmack from 2008 until 2011, when I failed at running a blog. I now write about Microsoft for Techie-Buzz. When not writing blog posts, I'm usually found designing websites and learning how to code. You should follow me on Twitter here.

Paul Paliath has written and can be contacted at paul@techie-buzz.com.

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