Mobile phone maker Nokia Corp on Thursday posted a loss of €368 million ($523 million) in the second quarter and for the first time was overtaken by Apples iPhone in smartphone shipments.
Nokia, which posted a profit of €227 million in the same period in 2010, said revenue fell 7% to €9.3 billion from €10.0 billion last year. It shipped 88.5 million mobile devices in April through June, down from 111 million a year ago and 108.5 million in the previous quarter.
Its smartphone volumes fell to 16.7 million units, which means Nokia is no longer No. 1 in the smartphone sector. Apple Inc sold more than 20 million iPhones in the same quarter, lifting its net income to a stronger-than-expected $7.31 billion.
“The challenges we are facing during our strategic transformation manifested in a greater than expected way” during the quarter, CEO Stephen Elop said.
Nokia said it was accelerating its cost-cutting plan to exceed the previously targeted savings of €1 billion in 2013.