21 Jul 2012

Nokia financial woes continue

8:22 am on 21 July 2012

Phone company Nokia posted losses of €1.41 billion in the last three months as it continues to lose market share to Samsung and Apple.

Sales fell 19% and revenue 25%, the BBC reports.

Nokia was the world's leading mobile phone maker for more than a decade, but has faced fierce competition.

It said it had sold four million Lumia smartphones, which have Microsoft's Windows software, in line with the market's forecast.

However, its overall smartphone figure of 10.2 million shipped devices was 39% lower than the corresponding number the previous year.

Microsoft recently announced it plans to bring out a new Windows 8 operating system later this year, but that means Nokia customers will have to buy a new handset to use it.

All three major major credit ratings agencies have cut Nokia bonds to "junk" as the firm has issued two profit warnings and announced plans to cut one in five jobs.