Nokia report $1.3b loss as sales plunged

Nokia widened its losses in the fourth quarter of 2010, putting a severe dent in hopes of a speedy turnaround under chief executive Stephen Elop.

The ailing Finnish mobile phone manufacturer posted a net loss of €1.07bn (£897m) as its new Windows-based smartphones failed to offset the decline in sales of its traditional handsets, and revenues slumped by 21pc. In the same quarter the previous year, the company reported a profit of €745m.

For a long time Nokia reigned as the biggest mobile manufacturer in the world but the last few years have seen it lose ground to Apple’s iPhones and smartphones which run on Google’s operating system.

It launched its first credible attempt to reverse this decline late last year, with the debut of the Lumia 710 and Lumia 800 – the first devices produced under a strategic partnership with Microsoft and “truly” based on its Windows operating system. The handsets went on sale in Europe and Asia in November, while T-Mobile started offering the 710 in the US in January.

Mr Elop said the devices had sold “well over” a million units since their launch, in line with company expectations, and that it was planning to launch in other territories.

“From this beachhead … you will see us push forward with the sales, marketing and successive product introductions necessary to be successful. We also plan to bring the Lumia series to additional markets including China and Latin America in the first half of 2012,” he said.