Nokia CEO Chalks Up $1.2 Billion Loss to "Competitive Challenges"

Paul Lilly

Competition's a pain in the backside, especially when your competitors are launching products people actually want as opposed to stinking up the joint with promises of something better on the horizon. That pretty much sums up Nokia's business strategy, as the handset maker found itself in a smartphone holding pattern during its shift to Microsoft's Windows Phone platform and the launch of the Lumia 900. As a result, Nokia posted a $1.2 billion loss during the first quarter of 2012 and blamed it on "competitive challenges and seasonality."

Nokia's smartphone sales in Q1 2012 plummeted 29 percent year-on-year and fell 26 percent compared to the previous quarter. Forget about the proverbial rock and hard place, the problem Nokia faced was being stuck between a Symbian and a Windows Phone platform.

"We are navigating through a significant transition in an industry environment that continues to evolve and shift quickly," Nokia CEO Stephen Elop said in a statement . "Over the last year we have made progress on our new strategy, but we have faced greater than expected competitive challenges."

Elop admitted to being "disappointed" with Nokia's Q1 performance but found solace in the fact that "Lumia is up and running" in the U.S. Indeed, there's a silver lining there. The Lumia 900 is arguably the best Windows Phone device currently available, and that's saying something when traditionally there has been little to separate devices running Microsoft's mobile OS. But will it be enough? Nokia's future may ultimately depend on the answer.

Image Credit: Nokia

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