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Nokia Lost $1 Billion in Q2 of 2012

Nokia is a handset manufacturing giant, or so it used to be. In the past, Nokia had its glory days, but now it is struggling to keep its share of the smart phone market, infact Nokia is losing this smartphone war till now. However, things became even more difficult for Nokia in the Q2 of 2012. This happened over the Nokia smart phones, which suffered a loss of $1 billion of 826 million Euros as the net sales of the smart phone devices suffered a 34 percent year over year drop. This news was shared by Nokia itself when it shared its financial information a few days ago.

However, the good news for Nokia is that, it did managed to ship 4 million of its Lumia smart phones, which are running on Windows Phone OS in Q2 of 2012. Whereas it had already sold 2 million of Nokia Lumia smart phones in Q1 of 2012 and roughly 1 million Nokia Lumia smart phones were sold in the last quarter of 2011. As far as the sales of the new Nokia Lumia goes, things look good for Nokia, but whether or not these sales will help fill the hole that was caused by the 34 percent year over year drop is not something we can correctly answer right now. But let us just stay hopeful for Nokia and besides, a company like Nokia can easily suffer such a loss, Right?

According to the CEO of Nokia, Stephen Elop,

“Nokia is taking action to manage through this transition period. While Q2 was a difficult quarter, Nokia employees are demonstrating their determination to strengthen our competitiveness, improve our operating model, and carefully manage our financial resources.

We shipped four million Lumia smartphones in Q2, and we plan to provide updates to current Lumia products over time, well beyond the launch of Windows Phone 8. We believe the Windows Phone 8 launch will be an important catalyst for Lumia.”

So far, Nokia has managed to survive the downfall it took from Q2, but Q3 holds new challenges for Nokia, as the Windows Phone 8 launches, which will not be available for the existing handsets. Whether it is taken as a hurdle or an opportunity, we can take a good guess from Nokia’s CEO’s statement because he seems optimist enough and surely, the updates for the Lumia handsets will keep people interested and keep coming back for more.

The CEO’s statement also gave us some new news as well, that there will be updates for the Nokia Lumia smart phones. However, that is not the entire news because surely, Nokia has planned to launch a new device after the Windows Phone 8 is launched and this new device will be running on the Windows 8 OS. But, that is just a thought, because Nokia might have something entirely in mind for that time to come. As the clock on Windows Phone 8 ticks closer, Nokia is trying its best to stay in the smart phone race and how far will it be able to recuperate from its Q2 losses is something that only the future can tell.