Finnish phone maker Nokia achieved underlying operating profitability in the first quarter but sales were down 20pc year on year from €7.3bn to €5.8bn. During the quarter, the device maker shipped 5.6m Lumia devices, up 27pc quarter-on-quarter.
Overall, mobile phone volumes were down 30pc quarter-on-quarter to a total of 55.8m units, which the company said reflected competitive dynamics and a higher than normal seasonal decline in the mobile phone market.
Nokia Siemens Networks saw net sales also decrease 30pc quarter on quarter to €2.8bn from €3.9bn the previous quarter.
The company nevertheless ended the first quarter with gross cash of €10.1bn in the bank.
Struggling mobile phone business
“At the highest level, we are pleased that Nokia Group achieved underlying operating profitability for the third quarter in a row,” Nokia CEO Stephen Elop said. “While operating in a highly competitive environment, Nokia is executing our strategy with urgency and managing our costs very well.
“We have areas where we are making progress, and areas where we are further increasing the focus. For example, people are responding positively to the Lumia portfolio, and our volumes are increasing quarter over quarter.
“Nokia Siemens Networks delivered another strong quarter and contributed to an overall improvement in Nokia Group’s cash position.
“On the other hand, our Mobile Phones business faces a difficult competitive environment, and we are taking tactical actions and bringing new innovation to market to address our challenges,” Elop said.
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