The Finnish mobile phone manufacturer Nokia has released this week several spreadsheets of its Q1 2012 financials. Last week they said that the company would make a loss and this has been confirmed as the number reveals a $1.7 billion (1.3 billion Euros) loss for the first three months of this year. Nokia had net sales of $9.7 billion (7.4 billion Euros).
772 million Euros of the loss are associated with the restructuring of the Nokia Siemens Networks, while another 101 million Euros for restructuring the Location & Commerce and Devices & Services departments. Basically, we’re talking about the shedding of the company’s employees and also moving some of the factories to Asia.
Nokia Lumia 900
Nokia’s CEO, Stephen Elop, mentioned that a significant part of the loss is because of the increasing costs of restructuring and also the more powerful competition. On Monday, in a statement to Moody’s, Nokia announced that they plan on prioritizing “cash conservation” exercises but in the last year the company’s liquid cash reserves dropped by almost a quarter (24%) so right now Nokia only has about $6.3 billion (4.8 billion Euros) for rainy days.
With Symbian being quite unpopular and MeeGo a rather exotic OS, Nokia is hoping that the Windows Phone platform will start grabbing some of the customers that up until now have preferred Android and iOS. However, these two platforms are at the moment way more developed in every way than the Windows Phone operating system so Nokia has several hard years ahead. Let’s see if they will make the switch to Android or stick with Windows Phone hoping for better days.
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