PARIS – Nokia reported a 39 per cent year-on-year drop in the number of smartphones it sold in the second quarter, to 10.2 million, while its net loss more than trebled.
Smartphone sales were the hardest-hit sector, as the company makes the difficult transition from its own Symbian operating system to Microsoft’s Windows Phone OS. Most of the 10.2 million smart devices it sold were older models running Symbian: It shipped just 4 million Lumia smartphones running the Windows Phone OS. Windows Phone has yet to make its mark, with Android and Apple’s iOS still taking the lion’s share of the market.
The decline in sales of Symbian devices was not offset by sales of Lumia phones — except in North America, where it was more than made up for by sales of the high-end Lumia 900, distributed by Rogers Communications Inc. in Canada and AT&T in the U.S., and the mid-range Lumia 710, sold through Wind Mobile and Mobilicity in Canada and T-Mobile in the U.S. Telus sells the Nokia 800.
While the volume of smartphone sales fell by 39 percent year on year, smartphone revenue dropped only 34 percent, to €1.54 billion, as sales of the more expensive Lumia phones boosted average smartphone selling prices 7 percent. That effect may not continue, though: Earlier this week, Nokia halved the retail price of the Lumia 900 sold through AT&T, to $50.
Nokia sold 73.5 million feature phones in the quarter, up 2 percent year on year, but average selling prices fell 14 percent to €31 before operator subsidies and taxes, pushing feature phone revenue down 11 percent to €2.29 billion.
Revenue from Nokia’s mapping business rose 4 percent, to €283 million, although it continued to make an operating loss of €95 million, a slight improvement on the year-earlier figure of €104 million.
The network infrastructure business, Nokia Siemens Networks, saw an 8 percent fall in sales, to €3.34 billion, while its operating loss widened to €227 million from €111 million a year earlier.