Nokia reports losses of £900 million in 2011

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Manufacturer makes massive loss both last year and in Q4 2011 but CEO Stephen Elop insists the three month period “marked a significant step in Nokia’s transformation”

Nokia made a loss of £900 million last year, with losses totalling £799 million in the final quarter of 2011.

The loss last year followed a £1.7 billion profit in 2010. Nokia had made a profit of £742 million in the same quarter in 2010.

Sales fell from £35.6 billion in 2010 to £32.4 billion last year, and decreased 21 per cent year-on-year to just over £8.39 billion million in Q4. However this figure was up 11 per cent from the pervious quarter.

Within its devices and services division, sales fell to £20.1 billion last year from £24.4 billion the previous year. They also fell year-on-year in Q4, from £7.13 billion to £5 billion but that was an increase of 11 per cent from Q3.

Sales of smartphones also slumped last year to £9.07 billion from £12.47 billion in 2010, and fell 38 per cent year-on-year in Q4 to £2.3 billion. This was an increase of 17 per cent from the previous quarter.

Within this division, it made a profit of £741 million last year, down from the  £2.9 billion profit made in 2010. Profits in this area were also down 81 per cent year-on-year to £170 million in the quarter.

Nokia shipped 77.3 million smartphones last year, down from the 103.6 million shipped in 2010. Smartphone shipments also fell 31 per cent to 19.6 million compared to the same three month period in 2010. Again, this was still a rise from the previous quarter, this time of 17 per cent.

Nokia also announced that it has sold well over smartphones globally since it first went on sale on November 16.

Nokia CEO Stephen Elop (pictured) said: “The fourth quarter of 2011 marked a significant step in Nokia’s transformation. Most notably, in Q4 we introduced new mobile phones and smartphones, which resulted from the strategy shift in our Devices & Services business.

“In the war of ecosystems, clearly there are some strong contenders already on the field. And with Lumia, we have demonstrated that we belong on the field.  Our specific intent has been to establish a beachhead in this war of ecosystems, and country by country that is what we are now accomplishing.

“And, while we progressed in the right direction in 2011, we still have a tremendous amount to accomplish in 2012, and thus, it is my assessment that we are in the heart of our transition.”

 

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