Nokia today announced its Q1 2012 financial results. Sales dropped 29% to €7.4 billion (from €10.4 billion the same quarter a year ago). It reported an operating loss of €$1.3 billion (about US$1.7 billion), attributing it to “greater than expected competitive challenges and seasonality” as well as cost of restructuring activities.
Underlying the market challenges that Nokia is feeling, its smartphone sales (including Lumia devices) dropped 51% to 11.9 million units from 24.2 million units the same quarter ago.
Nokia had already revealed that it had sold 2 million Lumia Windows Phones in the first quarter. As part of the announcement today, CEO Stephen Elop added,
We have launched four Lumia devices ahead of schedule to encouraging awards and popular acclaim. The actual sales results have been mixed. We exceeded expectations in markets including the United States, but establishing momentum in certain markets including the UK has been more challenging.
Nokia also expects another tough quarter ahead. Its operating margin will remain negative “well into the second quarter.”
Nokia announced in a separate statement that Colin Giles, executive vice president of sales, had resigned. Niklas Savander, executive vice president of markets will take over.
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