Nokia's smartphone sales decline after Windows Phone transition

The networking and mapping divisions also saw large sales declines, but its networking gear did become profitable this year

Nokia sold 7.4 million Lumia smartphones in the second quarter, its best yet for sales of the Windows Phone devices. That's 27 percent down on the same period last year, when it sold 10.2 million smart devices: 4 million Lumias and 6.2 million devices running the company's now-abandoned Symbian OS.

Nokia's decline in smartphone revenues was 24 percent, better than the 39 percnt decline in income for its Asha line of cellphones. Nokia did manage to increase the revenue per smartphone by 4 percent, whereas revenue per cellphone dropped 16 percent. Net sales totalled €5.70 billion ($7.48 billion), down 24 percent year-on-year. The company reported a net loss of €278 million, smaller than the year-earlier loss of €1.53 billion.

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Sales at Nokia Siemens Networks, the network equipment company over which Nokia has now assumed full control, fell 17 percent year on year to €2.78 billion, with the division moving to an operating profit of €8 million from an operating loss of €226 million a year earlier. In the third quarter, Nokia forecasts that the division's operating margin will rise to between 3 percent and 11 percent.

Nokia's navigation and mapping division, Here, saw an 18 percent decline in sales, to €233 million, with an operating loss of €89 million, not quite as bad as the year-earlier operating loss of €95 million.

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