Nokia is a pioneer in mobile telecommunications and the world's leading maker of mobile devices.
Nokia posts Q1 loss as sales plunge
Cellphone maker Nokia (NYSE:NOK) has suffered one of its worst quarterly results ever, blaming tough competition for a 929 million euro net loss as sales plunged.
The first-quarter loss compared with a net profit of 344 million euros in the same period last year and came as revenues slid 30 per cent to 7.4 billion euros, Finland-based Nokia said.
Nokia is fighting stiff competition from the likes of Apple's (NASDAQ:AAPL) iPhone and cellphone makers using Google's (NASDAQ:GOOG) popular Android software.
It said net sales of devices crashed 40 percent to 4.2 billion euros, with smartphone sales down by more than half as it
failed to assert a challenge in the smartphone race with its new Windows-based handsets a year after teaming up with Microsoft (NASDAQ:MSFT).
Nokia also issued a grim outlook for the second quarter, saying earnings would be "similar to, or below" those of the first quarter and that it will speed up its goal to cut costs by 1 billion by 2013.
Nokia CEO Stephen Elop described the quarter as "disappointing," saying that Nokia had faced "greater than expected competitive challenges."
He said the company will get rid of noncore assets and focus on "making any necessary changes to our organization, structure or team," but gave no details.
"We are navigating through a significant company transition in an industry environment that continues to evolve and shift quickly," Elop said.
The head of Nokia's global sales, Colin Giles, will leave after two years in the job, Nokia said, as it restructures the sales unit.
Sales in China the company's second-largest market plunged 70 percent in the quarter with a 35 percent drop in Europe, its largest market.
Nokia hoped to remedy its slide with the new Windows Phone 7, launched in October, eight months after Elop announced a partnership with Microsoft. Nokia says the Windows operating system will be the main platform in its new phones, phasing out the MeeGo and Symbian platforms.
In 2011, Nokia announced more than 10,000 layoffs to lower expenses and has not ruled out more cutbacks.
The company has said it would not provide annual targets for 2012 since it was in a "year of transition."