Nokia has just released its financial report for the second quarter of 2012, and it's bitter-sweet. While Lumia sales are really taking off, the company continues to operate at significant loss.
The company must be pleased to see its Lumia sales growing in strength. Previously the handsets have only sold well in the US but now its total sales have doubled within the second three month period of 2012.
But Lumia sales alone can't make Nokia profitable. In the report, it also reveals a $1 billion total operating loss. The problem is that, though Lumia sales are on the up, its performance in other sectors is sinking like a stone. In fact, it managed to sell 4.8 million fewer phones in total compared to the same period last year. In a statement, CEO Stephen Elop explained:
"While Q2 was a difficult quarter, Nokia employees are demonstrating their determination to strengthen our competitiveness, improve our operating model and carefully manage our financial resources... We are executing with urgency on our restructuring program. We are disposing of non-core assets like Vertu. We are taking the necessary steps to restructure the operations of the company."
Try as Nokia might, mistakes from years past have really put a dampener on the Finnish firm's long-term achievements. It remains to be seen what impact the WinPho upgrade debacle will have on Nokia, and some suggest the company may have to sell some of its patents to weather the storm. Here's hoping it can ride things out. [Nokia]