Nokia loses $1.38 billion in Q4, sells 1 million Windows Phones
Nokia's multibillion-dollar bet on Microsoft's Windows Phone operating system is still in its early stages, but so far the bet is a financially losing one. Though, there are glimmers of hope.
The Finnish phone-maker reported a $1.38-billion loss for the fourth quarter of 2011 on Thursday, but the company also said that it has sold "well over 1 million Lumia devices to date."
While the Lumia sales so far don't come close to challenging heavyweights such as Apple's iPhone, which sold about 37 million units in the same three-month period, the consumer uptake is notable considering that the Lumias aren't sold in nearly as many markets as rival phones from Apple, Samsung and HTC.
The Lumia line is Nokia's first range of handsets running on the Windows Phone software, and since the series debut in October, Nokia has released just two phones -- the Lumia 710 and the Lumia 800 -- to Europe, Hong Kong, India, Russia, Singapore, South Korea and Taiwan.
Only the Lumia 710 is currently available in the U.S. The newly announced Lumia 900, a phone designed specifically for the U.S. market, is expected to hit stores as early as March. Nokia has yet to launch its Lumia phones in China or Latin America, though the company said in a statement that would happen sometime in the first six months of the year.
Overall Nokia sales fell 21% in the last three months of the year, while smartphone shipments fell 31% from a year ago. Much of Nokia's smartphone dip is attributable to the decline in popularity of phones running the company's Symbian and MeeGo operating systems as consumers have turned to Google's Android platform and the iPhone. When Nokia agreed to take on Windows Phone, it stated that it would abandon Symbian and MeeGo as well.
The company's $1.38-billion fourth quarter loss follows a profit of about $980 million a year earlier.
-- Nathan Olivarez-Giles
Photo: A Nokia Lumia 800 smartphone sits on display inside a Nokia retail store in Helsinki, Finland. Credit: Ville Mannikko / Bloomberg