Nokia’s Q3: Operating profit slips by 60%, mobile sales up but smartphones down 38% on year

Nokia’s third-quarter has seen the Finnish mobile giant post another unsettling financial report, with operating profit down 60% year on year and its portfolio of smartphone continuing to struggle against its other smartphone rivals with sales down a further 38%.

However, the company has seen its featurephones report better than expected sales, helping to boost its mobile phone segment as consumers in emerging markets snap up its dual-SIM devices. Smartphone sales held at 16.8 million, an increase of 1% from its last quarter, with mobile sales hitting 89.8 million – rising 25% QoQ.

Overall, Nokia managed to weather its second-quarter net sales, posting €8,890 million which accounted for a loss of €71m. Whilst the company will not be happy about seeing yet another negative figure added to its balance sheet, it shows a dramatic improvement on its second-quarter loss of €487m.

Commenting on his company’s third-quarter, Nokia CEO Stephen Elop said:

I am encouraged by the progress we made during Q3, while noting that there are still many important steps ahead in our journey of transformation. With each step, you will see us methodically implement our strategy, pursuing steady improvement through a period that has known transition risks, while also dealing with the various unexpected ups and downs that typify the dynamic nature of our industry. During the third quarter, we continued to take the action necessary to drive the structural changes required for Nokia’s long-term success.

With Nokia World just a week away, company’s focus has turned to its portfolio of Windows Phones and its attempt to recoup some of its smartphone market share:

Additionally, I am encouraged by our progress around the first Nokia experience with Windows Phone, and we look forward to bringing the experience to consumers in select countries later this quarter. We then intend to systematically increase the number of countries and launch partners during the course of 2012.

Nokia says it is continuing in its attempt to reduce its operating expenses by more than a billion Euros in the next two years, closing manufacturing plants and outsourcing smartphone manufacturing to Asia.