The move to Windows Phone 7 has been a difficult one for Nokia. Even though the switch was announced almost a year ago, handsets have been sparse, although well received in the few regions around the world they have launched. But that hasn’t halped the bottom line, with the Finnish giant losing one billion Euros in the final quarter of 2011.
The company’s €1.07 billion loss is even more striking when compared to the €745 million in profit it made in the same quarter one year earlier, given that things weren’t going especially well for the company back then either.
Despite Microsoft giving Nokia a chunk of cash to build WP7 handsets, until they are plentiful around the world and marketed like their lives depended on it, it’s going to take a little while for Nokia to dig themselves out of this hole.
[WSJ]
Ozoneocean
Friday, January 27, 2012 at 12:54 PMWell they are still the world’s biggest phone maker and they’ll still probably be ahead even for a while yet. Even in good times Nokia would never expect a device like the on pictured to be their main selling product.
mk
Friday, January 27, 2012 at 12:56 PMDo you guys not read the reports at all? Yes, they lost a billion euros. But it didn’t have as much to do with their phone business as you might think; look at just these two one-off items under the section “The non-IFRS results exclude”:
- EUR 1 090 million partial impairment of goodwill in Location & Commerce
- EUR 119 million of intangible asset amortization and other purchase price accounting related items arising from the acquisition of NAVTEQ
TSH
Friday, January 27, 2012 at 1:15 PMI didn’t read the reports – what does “partial impairment of goodwill in Location & Commerce” even mean?? It sounds like something completely intangible, and pretty much an estimate invented by statistics boffins.
Wok
Friday, January 27, 2012 at 12:57 PMI would buy one if I could…
Jamie
Friday, January 27, 2012 at 1:23 PMTime for Nokia to get back to what they’re best at.
Making rubber boots…