Nokia Corporation has, in the last one decade, been the the world’s leading phone-maker and seller. In the last three months however, the firm has made great losses, estimated at about $1.7 billion, losing market share to Samsung and Apple.
Nokia’s smartphone sales have also dropped by 34 percent to $1.9 billion.
Stephen Elop, Nokia’s chief executive says, the company was facing “greater than expected competitive challenges.”
Nokia has sold some 4 million Lumia Smartphone with Microsoft’s windows software. According to the company, this is in line with the market’s forecast.
Nokia’s overall smartphone statistics show about 10.2 million devices were shipped, which is 39 percent lower than the previous year.
The Finnish phone-maker last week reduced the price of Lumia 900 by 50 percent hoping to overcome stiff competitions from Samsung and Apple devices.
Nokia shares increased and their figures not as bad as they looked. Nokia’s investors were at ease after reports that the company‘s cash position soar within the course of the last three months. Analysts at Ovum hoped this would offer a glimmer of hope to Nokia.
According to Nick Dillon of Ovum, as reported by the BBC, sales of the Lumia phone doubled meaning if Nokia maintained the momentum then it could be on course to recovery.
Nokia’s bonds with its three major credit rating agencies are broken as the company has given two profit warnings and has announced plans to cut one in five jobs.
In a statement, Mr. Elop said “We are navigating through a significant company transition in an industry environment that continues to evolve and shift quickly. Over the last year we have made progress on our new strategy, but we have faced greater than expected competitive challenges.”
