Nokia reports $154.8m net loss as sales drop

Nokia reports $154.8m net loss as sales drop

HELSINKI - Finnish mobile phone manufacturer Nokia announced Tuesday a net loss of 91 million euros (S$154.8 million) in the third quarter as sales continued to spiral downwards.

While losses during the quarter were less than one tenth of what they had been a year earlier, turnover during the three-month period dropped 22 per cent to 5.6 billion euros.

But sales of Lumia smartphones - which Nokia hopes can compete with Samsung and Apple devices - were a bright spot.

Lumia sales grew by about 200 per cent year-on-year to 8.8 million units, still far behind Apple's iPhone which sold 33.8 million units in the same period.

Deciding to cut their losses after years of falling sales, the former world leader in mobile phones will sell its handset operations to Microsoft for 5.44 billion euros in early 2014.

"The third quarter was among the most transformative in our company's history," Nokia CFO Timo Ihamuotila said in a statement.

He noted that in addition to the sale to Microsoft, Nokia became the full owner of NSN - formerly a joint venture with Siemens.

"(These are) transactions which we believe will radically reshape the future of Nokia for the better," Ihamuotila said.

Nokia's telecom equipment business, which will remain with the company, has fared better with an operating profit despite falling sales.

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