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Nokia revenue plummets despite high sales of Lumia smartphones

Last Updated: Friday, April 19, 2013 - 12:53

London: Nokia has seen a sharp decline in its shares despite good sales of its Lumia smartphones. The mobile unit's overall sales have fallen by 30 percent (1.59 billion euros), despite the first quarter witnessing a 27 percent growth in the sales of Lumia handsets, the BBC reports.

The Finnish company has reportedly undergone a 339 million Euros loss in the first three months of this year, marking a total loss of 1.57 billion Euros compared to the past year. While the profits had reached 7.35 billion Euros last year, this year the revenue has gone up to only 5.85 billion Euros.

According to the report, a total of 11.1 million smartphones have been sold this year, that includes 5.6 million Lumia handsets, 5,00,000 Symbian phones and five million Asha units. The sales of entry-level Nokia Asha phones have also recorded a fall of 46 percent. Swedbank analyst Hakan Wranne noted that there has been a deficit in both the sales volume and average selling prices of Nokia smartphones, which is a matter of concern for the business of the devices and services unit.

He added that 2014 would also see a similar revenue loss, as the market''s profit estimates might not be reached. However, research manager at International Data Corporation Francisco Jeronimo insists that the next year will be far more promising as the company is now headed to approach the mass market, not competing on the lines of Samsung and Apple smartphones.

On the dropping sales of Symbian units, Nokia chief executive Stephen Elop has said that there are certain progessive areas while some others need more of their attention, adding that the company is taking innovative measures to address their challenges.

ANI

First Published: Friday, April 19, 2013 - 12:53
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