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Nokia Q2 handset profit dropped by 24 percent


Nokia revealed its second quarter report which says that the mobile set maker had an operating loss of €115m (£98.8m). It is also struggling in handset business which resulted in revenues drop of 24% to €5.7bn.


Meanwhile, the Finnish mobile giant’s Lumia smartphones had left behind its opponent BlackBerry. It Windows platform is the third biggest operating system suite following Apple and Google’s Android systems.

A 3% decline was seen on the Helsinki stock exchange on Nokia shares.

The company was deprived of a 10% of its net cash to conclude on merely €4.07bn. Due to this economical turmoil, analysts are worried about the company’s future credibility if it didn’t overcome these problems. The total operating loss reaches up to €4.1bn in the previous nine quarters.

On the other hand, Nokia Siemens Networks, its merger for the mobile infrastructure business, posted an operating profit of €8m on €2.78bn revenues. Nokia bought the remaining 50% for €1.7bn after the end of previous quarter.

A major defect was observed in China, where sales slumped by a huge 48% mark, due to the fact that users were switching to other platforms like Android Software. Nokia’s is experiencing its ever lower handset revenue since 2002.

Nokia’s revenues by smartphones only make 40 % of its total wealth, which is very low as compared to other mobile makers. Other handset giants like Apple, BlackBerry and HTC are only concentrated to selling smartphones, which are in greater demand than “feature phones”.

Nokia’s recent flagship feature phone, the Asha, designed to overrun cheap Android phones in various regions of China, Asia and Africa but its sales declined from 5m to 4.3m. These are the lowest figures for Asha in its four quarters sale.

Elop discarded Android OS after he sworn in September 2010. He was concerned that it would be dominated by a one maker – as in the case of Samsung.

He chose Microsoft’s new Windows Phone software, which runs the latest Lumia models. He claimed that the smartphone business was “not a fight of devices, it’s now a war of ecosystems”.