Nokia's Smartphone Plan Isn't Working

Nokia's first quarter results aren't great news for the phone-making giant.

Nokia's second quarter results for 2013 include revenues of $7.5 billion, which sounds like a great figure. But the company's profits were essentially zero—at a non-IFRS earnings per share of $0.00. For sure, analysts were expecting the firm would make a loss of $0.0s per share, which means Nokia outperformed on expectations, but they were also expecting revenues of $8.63 billion.

Among the data probably the most significant information is the sales of Lumia smartphones. Nokia says 7.4 million of these devices were sold, up from 5.6 million last quarter.

The company is trying to ensure its future in three different ways: Lumia smartphones are seen as critical because the world is increasingly turning away from dumbphones and featurephones. But Nokia's also selling low-end, low price phones to the developing world, and it's also pushing the cameraphone agenda with its impressive PureView phone tech.

[Image: By Flickr user Kārlis Dambrāns]

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  • Jan Boucek Iv

    @SCHANDLICH Are you mad?? Nokia lost 278 mil EUR just this quarter.  Since last year, 25000 Nokians lost their job.  Lumias sales this quarter increased but the company IS losing money selling Lumias, thats a fact you somehow do not get. You cannot run business like this.  Maybe as a fanboy you like it that Nokia plunges billions into this venture but it is lossing shareholders money.  Since Microsoft strategy got announced, Nokia lost 5 billions EUR , lost marketshare and more job losses just got announced.  How can anyone call this a working strategy is beyond me.    

  • hhvdblom

    They where already losing money before they started with Windows Phone. Its not easy to fight yourself in the SmartPhone race. But the growth is still there. The Windows Phone OS is ahead of IOS and Android. IOS and Android cant adjust because they will be hostilled by the apps they offer. Because of that Windows Phone OS can grow. The big thing is put cheap Windows Phones like the Lumia 520/1 in everbodies hands and they can see by themselves it offers better experience as IOS and Android. It takes time but eventually everybody will recognize it.

  • Schandlich

    Nokia Surpasses Their Own Expectations, Did Not Lose Money, Ensured Tens of Thousands of People Still Have Jobs, But Did Not Meet the Unrealistic Targets of Investors So Their Plan Is Not Working.

    Fixed the headline for you.

  • Tbodini

    32% increase in Lumia sales and the tittle of this article is "ISNT" working.
    You can do a better job than that!