Nokia Corporation (NYSE:NOK) Shares Correct On Lackluster Earnings

Losses are increasing for the Finnish company. Nokia Corporation (NYSE:NOK)’s third quarter results were released recently, and the company, it was shown, suffered a loss of 969 million Euros, or about $1.27 billion. The company lost out on more than what was predicted by the various analysts, which was 695 million Euros. Also, the extent of the regression the once famous and hugely popular mobile company is made obvious, when one compares the third quarter results of this year with that of last year’s. Last year, during the third quarter, the company had suffered a loss of about 68 million Euros.
The company brought out the results of is third quarter right before the release of their new range of Lumia smartphones. The Lumia 920 as well as the Lumia 820 will be released sometime next month. The CEO of Nokia, Stephen Elop said recently, that Microsoft’s Surface can help turn the market current in their favor.
Out of all the phones that the company sold during the third quarter, it managed to sell only about 6.3 million smartphone devices, out of which, the minority of them, surprisingly, were the Lumia phones which have a Windows operating system. The Lumia phones sales amounted to about 2.9 million copies. The 3.4 million other smartphones are mainly the Asha phones which Nokia has been selling mainly in the developing countries, such as India.
Nokia is hoping for better results during the next quarter of this year, and although other smartphones are competitors, Nokia is encouraging other manufacturers to go in for the Windows operating system, since it would benefit the ecosystem, and make it more secure.
Microsoft is preparing to launch its Surface phone to be operated upon their native Windows operating system. Although the Surface phone is a direct competitor to Nokia, the ecosystem will be far more secure since it will draw attention to the Windows Phone 8 operating system. This will benefit Nokia, since people might take renewed interest in the smartphones which are running on this system. Nokia will be launching the new Lumia phones next month, which will compete with the other phones based on the Windows operating system.
Shares of NOK ended lower by over 4% to $2.80.
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