Nokia announces disastrous quarter results

From the first quarter 2011 to the first quarter 2012, Nokia’s cash available shrank by Euro 1.5 billion to Euro 4.872 billion. According to a press release, the weak result is due to rapidly decreased sales of cell phones and smartphones. During the first quarter, Nokia sold 82.7 million mobile devices, 24 percent less than in the same period last year. The average sales price decreased 22 percent to Euro 51. Sales of smartphones dropped 51 percent to 11.9 million units, mainly due to the weak demand for Symbian-based devices. Due to the influence of the new Windows Phone based Lumia smartphones, the average sales price for smartphones declined only 2 percent to Euro 143. During the first quarter, Microsoft Corporation supported the launch of Windows Phone with Nokia devices with US-$ 250 million (Euro 189 million).

Steven Elop, CEO of Nokia Corporation, expects another negative result for the second quarter 2012. The company said it will accelerate the implementation of new strategies and strengthen its product portfolio with the introduction of new products during the second quarter.