Nokia posts huge $1.7 billion Q1 loss; sales boss resigns as smartphone sales plummet 50%
Nokia warned that its first-quarter earnings would be weak, and the numbers are now in. Revenue declined 30% to €7.4 billion, or $9.7 billion USD last quarter, down from €10.4 billion, or $13.6 billion in the same quarter last year. The company posted a massive €1.3 billion loss, or $1.7 billion USD, which breaks down to a loss of €0.25 per share. Smartphone sales plummeted 52% to 1.7 billion units in the first quarter, and net device sales dropped 40% to 4.2 billion units. Read on for more.
“We are navigating through a significant company transition in an industry environment that continues to evolve and shift quickly,” Nokia CEO Stephen Elop said. “Over the last year we have made progress on our new strategy, but we have faced greater than expected competitive challenges. We have launched four Lumia devices ahead of schedule to encouraging awards and popular acclaim. The actual sales results have been mixed. We exceeded expectations in markets including the United States, but establishing momentum in certain markets including the UK has been more challenging.”
Nokia confirmed earlier this month that it sold 2 million Lumia Windows Phones in the first quarter, and it said on Wednesday that sales of its Lumia 900 smartphone at AT&T have been “encouraging” thus far. The Lumia 900 launched on April 8th, so sales are not reflected in Nokia’s first-quarter report.
The company confirmed in a separate statement that Colin Giles, executive vice president of sales, has resigned.