Nokia is showing a paradox of profit and loss. On the one hand, its dismal financial report for Q2 2013 shows that things are pretty low with loss €115 million(though not as bad as previously). Then looking elsewhere, the selfsame data is accompanied by a record 7.4M amount of Lumia sales.
Nokia displays a contradiction in its pecuniary and sales figures. While it has garnered a $7.4 million sales record of its smartphones that goes straight into its pocket, elsewhere things don’t look so bright and beautiful. Its financial state is in a mess although not nearly as pathetic as last year’s report showed. Nokia announced that company earned $7.4 billion(€5.69 billion)revenue in Q2 2013. In last year, Nokia earned $9.2 billion in same quarter.
With a loss of $151 million (€115 million) from its coffers, it seems a shadow of demoralization has pervaded the atmosphere at Nokia. The cost prices of its smartphones (especially the cheaper ones) have come down leading to greater sales. It also took a hefty $250 million in payments from Microsoft which does it a lot of credit.
Speaking of the Asha 501, the CEO remarked that it was a source of encouragement and that further steps were being taken to improve the stylish and sassy smart phone. Nokia also plans on some restructuring. This will require downsizing. Though it is unpleasant, it’s also a necessary evil that must be undertaken for financial health.
This year, things have been tough for Nokia. Its Symbian platform showed a decline too thereby further complicating matters for the Finnish giant. Meanwhile, the Lumia 520 is the best selling phone on a shoestring budget. Nokia has to pay attention to its high-end mobile phones too if it wants to get out of the rut it finds itself in right now.
Image Credit: Getty Images