Nokia Group posts net sales decline in Q1 results
Finnish mobile maker Nokia have reported a decline in net sales across devices and services, mobile phones and mobile broadband arm Nokia Siemens Networks (NSN) in the companyâ€™s first quarter results for this year.
The vendor posted 2013 Q1 net sales of â‚¬5.9 billion throughout its operations which represents a 20% decrease year-on-year from â‚¬7.4 billion in Q1 2012. The period following December was blamed for a 27% quarter-on-quarter decrease which saw a drop from â‚¬8 billion in the final quarter of 2012.
Nokiaâ€™s Lumia smartphone, however, showed positive growth from Q4 of 2012. 5.6 million units sold in Q1 of 2013 showed an increase of 27% quarter-on-quarter, while mobile phones as a whole decreased 30% over the same period to 55.8 million units sold.
The company did claim to have a â€œsolid cash positionâ€ with â‚¬10.1 billion gross cash and net cash of â‚¬4.5 billion. Its infrastructure arm, Nokia Siemens Networks, contributed approximately â‚¬210 million to the companyâ€™s net cash position and Nokia CEO Stephen Elop said the company was â€œpleasedâ€ with its performance.
â€œNokia Group achieved underlying operating profitability for the third quarter in a row. While operating in a highly competitive environment, Nokia is executing our strategy with urgency and managing our costs very well,â€ he said.
â€œWe have areas where we are making progress, and areas where we are further increasing the focus. For example, people are responding positively to the Lumia portfolio, and our volumes are increasing quarter over quarter.â€
Elop also commented that NSN delivered a strong contribution to the portfolio while the mobile phone market was proving a difficult environment to make profits against market leaders Apple and Samsung.