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Nokia slips into red in December quarter, shows good growth in India

Net sales of the company slumped to 10.01 billion euros in the 2011 December quarter from 12.65 billion euros in the year-ago period.

twitter-logo PTI   Helsinki/New Delhi     Last Updated: January 27, 2012  | 11:39 IST

Finnish cell phone maker Nokia on Thursday reported a loss of 1.08 billion euros for three months ended December 2011 as intense competition and sliding smartphone market share took a toll.

However, Nokia saw good growth in its India business, especially in sales of dual SIM phones.

"Although the mobile device industry continued to see volume growth in 2011, our net sales and profitability were negatively impacted by the increasing momentum of competing smartphone platforms relative to our Symbian smartphones in all regions as we embarked on our platform transition to Windows phone...," Nokia said in a statement.

Net sales of the company slumped to 10.01 billion euros in the 2011 December quarter from 12.65 billion euros in the year-ago period.

Further, pricing actions due to the competitive environment in both the smartphone and mobile phone markets impacted the company.

The mobile phone major, which had a profit of 742 million euros in 2010 December quarter, is battling stiff competition from the likes of Apple and HTC in the fast growing smartphone market.

On the other hand, markets such as India and the Middle East recorded good performance in the 2011 fourth quarter.

"Overall, we are pleased with the performance of our mobile phones business, which benefited in the fourth quarter from sequential double-digit percentage growth in our dual SIM business, with particular strength in India, Middle East and Africa and South East Asia," Nokia CEO Stephen Elop said.

The Finnish entity is now betting big on Lumia smartphones, that works on Microsoft's Windows platform. These phones have so far been introduced in Europe, Hong Kong, India, Russia, Singapore, South Korea and Taiwan.

For full year 2011, the ten markets in which Nokia generated the "greatest net sales" were from China, India, Brazil, Russia, Germany, Japan, the US, the UK, Italy and Spain.

Net sales of the company in 2011 stood at 38.66 billion euros.

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