Nokia just posted their latest preliminary quarterly financial results and even though the company has suffered a loss their overall standing is good and Lumia smartphone sales are up.
Nokia is reporting decreased revenues of $7.4 billion, down from $9.2 billion during the same quarter last year. The good news is that they only lost $150 million which is tiny compared to their own previous losses and to other smartphone manufacturers who are struggling.
The best news is that their Lumia sales are continuing to grow. Nokia is reporting 7.4 million Lumia devices sold during the quarter, up 32% compared to the previous 5.6 million Lumias sold in the first quarter of the year. This is in no small part due to the popularity of the Lumia 520, the low-end Windows Phone that took the world by storm and shot up to number one in just a few short months.
In other parts of the company, Nokia’s mapping divison, HERE lost around $116 million while Nokia Siemens Networks managed to squeeze an $10 million profit. In an effort to regain profitability Nokia has let go of thousands of employees during the past few years in massive restructurings. And the company won't stop there as more restructuring is planned for the current quarter with up to 440 employees being let go in the near future.
The company is expecting higher net sales of its smartphones in the next quarter due to wider availability and new products such as the high-end Lumia 1020. However that doesn’t translate in wider margins. In fact the company has lowered its outlook by 2% for the current quarter due to high manufacturing costs of Lumia devices coupled with “competitive industry dynamics”.