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Nokia goes deep in the red in the second quarter, smartphone sales collapse to 16.7 million

Posted: , by Victor H.

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Nokia goes deep in the red in the second quarter, smartphone sales collapse to 16.7 million
Nokia, the company which shaped the smartphone market back in 1996, swings deep in the red in the second quarter after smartphone sales collapsed by 31% to 16.7 million units with operating loss amounting to nearly $692 million (487 million euro). The company struggles to sell Symbian smartphones as the decline of smartphone sales amounted to the whopping 7.6 million in comparison to the 24.3 million smartphones sold in the first quarter. Nokia's CEO Stephen Elop has reportedly admitted that the results were "clearly disappointing," while Nokia's official statement clarified that challenges "manifested in a greater than expected way in Q2 2011." 

This means that Apple's iPhone which triggered Nokia's decline back in 2007 and Apple has become the biggest smartphone maker in the world. Cupertino was thriving with sales of 20.3 million units for the quarter is now selling more than Nokia smartphones. Samsung, Nokia's other big rival, sold 13.6 million smartphones last quarter and might also outgrow the Finns in terms of smartphone sales. At the same time, the anticipated Nokia Windows Phone savior is coming up only as early as the end of the year. 

Nokia's went into the red with a net loss of $521 million (368 million euro) compared to a net profit of $322 million (227 million euro) for the same period last year. Nokia's net sales decreased to $13.19 billion (9.275 billion euro) in the quarter, down from nearly $14.2 billion (10 billion euro) in Q2 last year. The company also posted negative earnings per share of -$0.14 (0.1 euro).

Analysts expected the Finnish company to post earnings of 3 cents per share with revenue standing at just above $13 billion. Two months ago, in May, Nokia has revised its earlier guidance on phone revenue saying that it won't be able to meet its target of more than some $8.7 billion (6.1 billion euro).

Back in February, Nokia shocked the industry when it announced that it's abandoning Symbian and is adopting Windows Phone as its main platform. Since then, the company's shares have halved in value with market share collapsing faster than that of any other company in the history of the industry.

source: Nokia

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posted on 21 Jul 2011, 06:12 5

1. dionddc (Posts: 129; Member since: 19 Jul 2011)


Samsung sold at least over 19 million smartphones in Q2. How come that wasn't mentioned?

posted on 21 Jul 2011, 08:48 7

15. The_Miz (Posts: 1496; Member since: 06 Apr 2011)


Because Samsung spends their time copying Apple?

posted on 21 Jul 2011, 09:44 2

27. Victor.H (Posts: 702; Member since: 27 May 2011)


Thanks for the input, dionddc, it seems like that's only analysts' estimates for sales (and that's why it's not included, even though it sounds credible). We'd appreciate if you could share a link to any official data for that!

posted on 21 Jul 2011, 10:45 1

31. gallitoking (Posts: 4720; Member since: 17 May 2011)


.............. thats what i thought..... no link

posted on 21 Jul 2011, 12:49 2

35. 530gemini (Posts: 2198; Member since: 09 Sep 2010)


@dionddc. Samsung only sold 13 million smartphones in the last quarter, and it is stated in this article.

posted on 21 Jul 2011, 14:30 1

49. messiah (Posts: 438; Member since: 19 Feb 2010)


"it announced that it's abandoning Symbian and is adopting Windows Phone as its main platform. Since then, the company's shares have halved in value " isn't that a great testimony of how disappointing Wikndows platform is? i mean, to bring the number one company and destroy their sales in less than 6 months?

posted on 21 Jul 2011, 16:04

53. Heatfan316 (unregistered)


And you spend your time copying the real Miz,let me tell you something kid, Samsung put out a product that looks similar to what apple has on their home screen but when you copy something it has to be exactly the same that's what copy means in case you didn't know, maybe the Miz should file a lawsuit on you for impersonating his wresting character.Just a reminder from your friendly neighborhood troll hunter.

posted on 21 Jul 2011, 16:50 1

54. Heatfan316* (unregistered)


So heatfan.. Im copying your name but it is slightly different.. Is this not Copying? YES! Im not an Apple fan but what Miz is saying is that Samsung has pretty much "copied" the look of how the IPhone looks.. look at them side by side! Is "The Miz" copy protected? is it Trademarked? I dont think so. You should look up "copy" (http://en.wikipedia.org/wiki/Copying)
And troll hunter? You like to hunt trolls? get real! Little Kid! Grow up!

posted on 21 Jul 2011, 19:51

60. Heatfan316 (unregistered)


And yes you are a crapple fan only an immature fanboy would talk like that. Android fans don't talk like that, this is you Miz your so immature you can't even hide it.

posted on 22 Jul 2011, 01:36

70. dionddc (Posts: 129; Member since: 19 Jul 2011)


@The_Miz

Apple copied Motorola though.

The only reason they copied Apple is because Apple is s**t, and Samsung improved on their designs. That's why people are moving to Android.

posted on 22 Jul 2011, 01:49

71. dionddc (Posts: 129; Member since: 19 Jul 2011)


@530gemini

In all honesty, all those who asked for a link - this shows how dumb the community is here. I could own all you iPhone retards in an argument.

530gemini, this shows how much of an idiot you truly are.

That 13.6 million smartphones is more likely for Q1 of this year. It's Phone Arena - they always use outdated statistics to make Apple look bigger than it really is.

http://www.reuters.com/article/2011/07/05/idUSL3E7I405420110705

There's your link. 19 million smartphones.

Samsung is increasing way faster than Apple. The lack of research and knowledge the iOS fans have in this community is lackluster. You should learn to listen to the latest forecasts, instead of just assuming that the "last quarter" means the "latest quarter".

I hope you realise how much of a dumbass you are 530gemini, for actually believing Samsung only sold 13.6 million smartphones in Q2. That was Q1.

It shows how stupid you really are. You're still living in 2007, and you fail to see the trend. I'd wish you luck in whatever career path you're undertaking, it better not involve being smart though.

posted on 21 Jul 2011, 06:20

2. Mat4Maemo (unregistered)


Poor Nokia,
they invented something as unnecessary and pointless as smartphone and than came bad guys and started selling and producing them better than our heroes.

Today they struggle to survive in this wild and so mad world of cellphone industry where it is so hard to sell things which nobody really needs because others sell the same thing better.

They have to live on a broken penny, lower than my grandmother retirement rate, that is almost 17 millions a quarter.

POOOOOOOOOOOR NOKIA......

posted on 21 Jul 2011, 06:42 5

5. ilia1986 (unregistered)


You're clearly an idiot.

First of all why on earth smartphones are useless? You're just a troll.

Second of all - for a company that used to dominate the market until 2007 - that's a huge hit. Not saying that that's not their fault - but nevertheless.

So yeah - bad news for Nokia. I just hope Apple sinks down someday as well..

posted on 21 Jul 2011, 08:57 7

18. SuperAndroidEvo (Posts: 4888; Member since: 15 Apr 2011)


From my experience with my brothers Windows Phone 7, I have to say that Nokia STILL has a fighting chance. Windows makes more money from Android phone sales than they do from their WP7. So now they can theoretically invest double the amount of money that they have been investing in WP7. Also this new Mango update includes 500 NEW features. That is truly impressive. With all that Windows is putting into WP7 & Nokia's great hardware I feel that Windows Phone 7 is primed to become something VERY strong. I think that WP7 OS is very intuitive, extremely smooth & fresh, everything that Apple's iOS is not. Nokia didn't get hurt from their hardware, they got hurt on their OS. With the feature rich WP7 OS & Nokia's great hardware, I think this combo can do some serious damage. Who knows maybe even take a bite out of Apple's pie. Maybe in the next 4 years Apple will be in Nokia's boat, because iOS is the most stagnant OS out right now. People ARE getting BORED with iOS!

posted on 21 Jul 2011, 09:22 5

20. ilia1986 (unregistered)


Exactly.. I so wish that Apple and it's iSheep burn down together..

I would like to see a future in which only open source OS would dominate. Sure, WP7 isn't quite Android - but MS actually let's people hack it and install it on devices like the HD2, unlike Apple which continues to be ignorant and arrogant about it.

posted on 21 Jul 2011, 09:37 5

25. SuperAndroidEvo (Posts: 4888; Member since: 15 Apr 2011)


Couldn't have said it any better, well maybe the burning of iSheep. Now if you meant it on a metaphorically level then yes. (Which I think you did.) If it was literal then I can't condone the burning of people even if they are iSheep. lol Just having a laugh, but I do get what you are saying though! :-)

posted on 21 Jul 2011, 10:49 4

32. gallitoking (Posts: 4720; Member since: 17 May 2011)


and now is where you two hold hands and look a the sunset... jk.. is funny how you critize Apple for not giving options to customer, and u dont want to have competition.. there is no denying that Apple set the bar high.. but we need Apple just as Batman needs the joker....

posted on 21 Jul 2011, 12:44 4

34. SuperAndroidEvo (Posts: 4888; Member since: 15 Apr 2011)


Yes & no. Apple doesn't play well with others. This mobile market was strong before Apple & will be after Apple. I think that if Windows steps up & makes a difference in the mobile game then the market will keep getting stronger. Apple is a company who succeeded because they stole ideas from other corporations. Apple infringed on Nokia’s patents & became what they are now because of it. How can Apple be allowed to have any patents of their own when these new patents they have, resulted from patents stolen from Nokia? Nokia didn't resort to banning Apple, they just make them pay royalties. Apple is trying to ban because they fear the competition. At one time Apple was the very best phone out. That is not the case anymore. Apple knows this & that is why they want to ban HTC & Samsung. If they win the banning of course then they will go after Motorola, & LG because they too have better phones than Apple at this moment. So we really don’t need Apple. The mobile market is too healthy with or with out Apple!

posted on 21 Jul 2011, 12:55 1

39. SuperAndroidEvo (Posts: 4888; Member since: 15 Apr 2011)


Ohh I forgot my DC comics reference. The mobile market is Superman & Apple is kryptonite. All we need is to get rid of the kryptonite & Superman will be as he always was & will be in the future, STRONG! I know you will like that one gallitoking!

posted on 21 Jul 2011, 13:01 3

40. 530gemini (Posts: 2198; Member since: 09 Sep 2010)


@ilia. I'm sure Apple will sink someday. But with Apple's billions, you'd probably be dead by then. I guess you won't be resting in peace :)

posted on 21 Jul 2011, 13:09

43. 530gemini (Posts: 2198; Member since: 09 Sep 2010)


@superfandroidevo. Here he goes again with his relatives, lol.

You said that the iphone is not intuitive, not smooth, and not fresh. Wow, those are exactly the core things that made the iphone a huge success, lol.

What? Nokia didn't get hurt on their hardware but only on their OS? They lost money. I think that would hurt them as a whole, lol.

What? iOS is a stagnant os? So you mean to say that iOS from 2007 and iOS5 are the same? People are getting bored with iOS, but they're growing and growing and has a 70% user satisfaction. Wow, the facts really support your findings, lol. Nice one superfandroidevo.

posted on 21 Jul 2011, 13:17 3

45. ngo2dd (Posts: 896; Member since: 08 Jul 2011)


Ya and iOS user are the dumbest of all the users. 38% of them believe that have a 4g phone? So what is your point?

posted on 21 Jul 2011, 13:19

46. 530gemini (Posts: 2198; Member since: 09 Sep 2010)


@superfandroidevo. WP is stepping up alright, and that will be the demise of android :)

Android is the one that stole everything from iOS. That's the only reason why people are buying android devices. Coz it's just like the iphone, but it's cheaper, and is more open. Apple pays for licensing fees, unlike google who just rips off ideas from Apple.

What? Nokia didn't resort to have Apple products banned? Then how would you explain this.

http://www.techgearx.com/nokia-asks-itc-to-ban-iphone-ipod-and-macbook-imports-files-another-lawsuit-against-apple/

Hahaha. Nokia was the one who tried to have Apple products banned first, not the other way around. So I guess Nokia was afraid of Apple, and they should :)

You don't know what you're talking about. Shame, shame, shame :)

posted on 21 Jul 2011, 13:23

47. 530gemini (Posts: 2198; Member since: 09 Sep 2010)


@ngo2dd. The reason that some ip4 users believe that their iphone4 is a 4g phone, is because of its name iphone 4. And also because it works so well, comparable to any 4g phones :)

posted on 21 Jul 2011, 14:14 2

48. SuperAndroidEvo (Posts: 4888; Member since: 15 Apr 2011)


iOS was fresh & intuitive in 2007, NOT 2011. You are stuck on 2007 let's move on to the present ok. iOS 5 is the same sh*t just a different number. What they got iCloud something that have been out now for an eternity considering how FAST the mobile market moves. Also the new notification in iOS 5 is another thing that has been done by Android & to open the camera from the lock screen is a been there done that feature from Windows Phone 7. So from the sound of it Apple's iOS 5 is the same iOS from 2007 just with blatant copies from other OS’s. Windows Phone 7 Mango update has 500 new features. Now that is an update! The 70% satisfaction rate are from the very new people who just got their iPhones this past 2 quarters & from the same dumb people who think the iPhone 4 is 4G. lol I never believe those stupid customer satisfaction ratings. I believe real world stats like how Android is #1 on the mobile market & how now Android has 30% of the tablet market in less than a year. From those numbers Android tablets have a higher saturation rate in the tablet market than Android phones had on the mobile market at the same time in its life time as Honeycomb has now. Those are impressive numbers not some stupid survey done on user satisfaction. lol All the people that are starting to get out of their 2 year contracts with the Apple iPhone want the best phone on the market, just like they did when the signed their contracts 2 years ago. Guess what 530gemini the Apple iPhone 4 is not the best phone out there. So if the trend holds up they most definitely won’t get an iPhone 4 when they are so many dual-core phones out there. By the time Apple figures out how NOT to make their dual-core chips melt the iPhone, Android will start releasing quad-core tablets & a few months later quad-core phones. lol How about that for facts!

posted on 21 Jul 2011, 14:45 2

50. SuperAndroidEvo (Posts: 4888; Member since: 15 Apr 2011)


That was in 2010 last year when Nokia was desperate because Apple gobbled all their market share. In 2007 Nokia didn't need to resort to that because they were the king of the mobile market. Nice try though. I know exactly what I am talking about. Apple is king now but they are scared & want to eliminate competition because they can’t make the better products anymore. That is cowardly & weak. lol Apple infringed on Nokia's patents thus the patents that Apple came up with a result should not count. If Apple can do it and become the behemoth that it is, why can’t anyone else do it? Why is it good for Apple but not good for everyone else. It's a very hypocritical thing. Kind of like how hypocritical iSheep are! Dude I love how this is a Nokia article yet you 530gemini can make this an Android vs. Apple thing. lol

posted on 21 Jul 2011, 14:49 3

51. SuperAndroidEvo (Posts: 4888; Member since: 15 Apr 2011)


Yeah an iPhone 4 is in the same league as any 4G phone, sure. lol That is funnier that the stupid Apple owners who think an iPhone 4 is 4G. lol

posted on 21 Jul 2011, 15:25

52. gallitoking (Posts: 4720; Member since: 17 May 2011)


I am sorry but i think is funny....

posted on 21 Jul 2011, 18:33

57. AndroidtopsApple (Posts: 7; Member since: 07 Jun 2011)


What reasons did you prefer an IPhone over an Android?

posted on 21 Jul 2011, 18:34

58. AndroidtopsApple (Posts: 7; Member since: 07 Jun 2011)


Why did you prefer an IPhone over an Android?

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