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The Mighty Has Fallen: Nokia Reports Second Quarter Loss

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Nokia just released its earnings report for the second quarter of 2011.  As you probably know by now, Nokia’s in a financial decline so it’s not surprising that it has reported an operating loss.  What is surprising, though, is the amount of loss the Finnish company has reported.

According to Nokia’s financial report, the company suffered an operating loss of €487 million for the quarter.  Last year, the company reported an operating profit of €295 million, so that means that the company’s earnings dropped €782 million in one year.

All of Nokia’s products suffered a decline in sales.  Smartphones took the biggest hit, dropping 33 percent to €2.368 billion from €3.503 billion a year ago.  In terms of volume, the decline is 34%.  Earnings per share are down by 45 percent and Nokia reported a debt of €176 million.

The decline in sales of Nokia products are attributed to strong sales of iPhone and Android handsets.

Amidst all the gloomy financial state of Nokia, CEO Stephen Elop is hopeful that its Windows Phones will help the company recover, but until actual Windows Phone handsets ship, there is no telling if Nokia can indeed recover.  The Nokia N9 Meego handset unveiled last month looked promising, but if Nokia does not put actual units in stores soon, iPhone and Android handsets, which are getting better and better, will make it harder for Nokia to compete.

You can find Nokia’s Q2 2011 report here.

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