Nokia Q2 2011: 'clearly disappointing' results as challenges prove 'greater than expected'

With Nokia still yet to fully dive in to the Windows Phone swimming hole, you had to know it was going to be another ugly quarter's worth of results. And it is. The company just posted its Q2 2011 numbers and there's a definite downward trend. Operating profits declined 44 percent since Q1, 391 million Euro compared to 704, and net sales of mobile devices are down 23 percent over the same period -- 20 percent compared to Q2 last year. CEO Stephen Elop quite naturally tried to spin this thing in the right direction:

The challenges we are facing during our strategic transformation manifested in a greater than expected way in Q2 2011. However, even within the quarter, I believe our actions to mitigate the impact of these challenges have started to have a positive impact on the underlying health of our business. Most importantly, we are making better-than expected progress toward our strategic goals.

But, he can't deny the obvious, calling the results "clearly disappointing." Looking forward, Elop expects "competitive pressures to continue," but indicates the company has a "clear strategy" to improve things. He says those who have seen the company's early Windows Phone devices (really, who hasn't) are "very optimistic" about their potential and that they hope to launch this year with a "sequence of concentrated product launches. Very expensive launches, we hear.

Update: Elop just wrapped up his portion of the company's earning call. A summary and a few choice quotes are available below.

Continue reading Nokia Q2 2011: 'clearly disappointing' results as challenges prove 'greater than expected'

Nokia Q2 2011: 'clearly disappointing' results as challenges prove 'greater than expected' originally appeared on Engadget on Thu, 21 Jul 2011 06:52:00 EDT. Please see our terms for use of feeds.

Permalink   |  Nokia, (PDF)  | Email this | Comments

Source: http://www.engadget.com/2011/07/21/nokia-q2-2011-operating-profit-down-44-percent-since-q1-challe/

ELECTRONICS FOR IMAGING ELECTRONIC DATA SYSTEMS ELECTRONIC ARTS