Nokia Q2 2011 financial results: 487 million Euros worth of losses, unit sales down 20% year on year

Nokia has just published their Q2 2011 financial results and there’s a lot of data to parse through here, so let’s start with the big numbers: 9.275 billion Euros worth of sales were made in Q2, which sounds impressive, but it isn’t because the Finnish handset maker failed to make a profit and instead managed to lose 487 million Euros. In terms of actual devices shipped, Nokia only moved 88.5 million units globally, down a whopping 20% compared to the same quarter last year. The territories with the biggest year on year volume losses are North America (42%), Greater China (41%), and Nokia’s home turf, Europe (30%). The only territory where Nokia actually managed to increase year on year sales is Latin America, up 10% to 12.3 million units. Breaking the devices down to smartphones and mobile phones, Nokia managed to ship just 16.7 million smartphones in Q2, down 34% from the same quarter a year ago. The average selling price for said smartphones actually increased 3 Euros however (year on year), to 142 Euros. Mobile phones hit 71.8 million units, down 16% year on year, with an average selling price of down 1 Euro from a year ago to 36 Euros.

Interesting tidbits from the press release:

“The challenges we are facing during our strategic transformation manifested in a greater than expected way in Q2 2011.” — Stephen Elop, Nokia CEO

Nokia has 3.9 billion Euros worth of cash saved up.

Q3 2011 expectations are to break even, plus or minus 2%.

“Our overall Devices & Services net sales in the second quarter 2011 benefited from the recognition of approximately EUR 430 million of IPR royalty income related to the second quarter 2011 and earlier periods recognized in Devices & Services Other net sales.” — That’s a nice way of saying “money from Apple”.

“During the second quarter 2011, distributors and operators purchased fewer of our devices across our portfolio as they reduced their inventories of Nokia devices.”

Interesting tweet from Tomi Ahonen, ex Nokia employee turned consultant, publisher of several books: “so without the Apple settlement, Nokia actually made over 1 BILLION dollar LOSS in handsets!”

We’ll be updating this article throughout the day. There’s a call scheduled for a little over 1 hour from now.

  • Noel

    Somebody pls tell Elop to make the MeeGo N9 available everywhere now. Give the masses what they are craving for and Nokia will start seeing an upward climb. I doubt the windows venture will save Nokia. Somebody knock some sense into Elop…if the iPhone can do it for Apple, the MeeGo N9 will help stop Nokia’s downward slide.

  • Anonymous

    The pain of restructuring. Start buying NOK shares now as they a little more than a gallon of gas.
    I hardly doubt in the next 5 years they will still be a sinking ship. If anyone has any experience in watching this industry shift, its always cyclical. NOK is no exception.
    Same was being said of Motorola not too long ago when they were in a similar position.

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