Nokia Posts Bad Quarter, CEO Says Surface Phone Would Stimulate Market
Nokia announced its sixth consecutive quarterly loss today ahead of the release of its new Lumia 920 and Lumia 820 according to the Wall Street Journal. CEO Stephen Elop thinks a potential Surface phone could help stimulate the market, however.
Nokia previously warned that its third quarter results wouldn’t be great, and it was right. The company posted a net loss of €969 million ($1.27 billion) for the quarter. That is more than the €695 million loss analysts predicted and a lot more than the €68 million loss the company posted during the same quarter last year.
During the third quarter Nokia sold a total of 6.3 million smartphones. Of that 6.3 million, only 2.9 million were Lumia phones running Windows Phone 7. The other 3.4 million smartphones include the company’s Asha smartphones which it sells in developing countries.
Nokia expects the next quarter to pick up a bit, and CEO Stephen Elop mentioned in an investors call that Nokia encourages other manufacturers in the Windows Phone space like HTC and Samsung. According to The Verge, Elop will treat the other companies as competitors, but he recognizes that more manufacturers will help “spur the ecosystem.”
When asked about a potential Microsoft Surface phone Elop said “it’s certainly a stimulant to the ecosystem.”
Recent rumors said Microsoft is preparing a Surface phone for the second wave of Windows Phones next year. The phone will directly compete with Nokia’s phone, but it could also draw more attention to the Windows Phone 8 ecosystem, which would help Nokia.
Nokia’s new Lumia 920, Lumia 820, and Lumia 810 will likely come to market early next month. The phones will compete with other WIndows Phones from HTC and Samsung as well as the iPhone 5 and new Nexus devices.