Nokia the Finnish Multinational Communications Corporation has unveiled its fourth quarter 2011 financial results and the good news is Windows Phone sales, which Nokia claims that over 1 million Lumia devices to date has been sold and yet strong demand for the Lumia 800 and Lumia 710 smartphones were not adequate to turn Nokia’s ailing earnings.
According to the official reports, in the fourth quarter 2011 the Finnish Multinational company has recorded a €954 million ($1.25bn) profit loss, counting the final 2011 count to a €1.073 billion ($1.4bn) loss, down 43-percent year-on-year.
Furthermore, the total sales of devices were decreased by 29-percent year-on-year, with smart smartphone shipments decreased to 19.6m units from 28.6m a year ago. On the other hand, Gross margin on smartphones as well dived from 28.7-percent to 19.9-percent, despite the fact that the Finnish company did at least restrain its smartphone expenses by over €150 million.
Sadly, on the side Symbian devices are facing issues of their own, with the rising markets that have earlier flocked to Nokia’s cheaper handsets currently looking somewhere else.
CEO of Nokia, Stephen Elop stated that the changing market circumstances are putting augmented pressure on Symbian, noting that in certain markets, there has been an acceleration of the projected trend towards lower-price tagged smartphones with specifications that are dissimilar from Symbian’s traditional strengths.
This indicates that Symbian demand will fade faster than Nokia initially expected, and the Nokia isn’t making any 2012 prophecy because of the unsteadiness of the market place. On the other hand, Nokia’s Lumia 900 smartphone is expected to land on AT&T in the US on March 18 at a price tag of $99.99 with new contract details, to face the challenge in the smartphone market.