Nokia is stuck in a bit of a transitional rut at the moment. It announced its decision to back Windows Phone 7 as its “primary smartphone platform” back in February, and it’ll be months before we see the Sea Ray.
So where does that leave the Finnish manufacturer in the meantime? In a bit of a hole, actually, as evidenced by its Q2 results.
Operating profits have tumbled 44 percent since Q1, from €704 million to €391 million. Cripes. Over the same period, net mobile sales were down 23%.
CEO Stephen Elop conceded that the results were “clearly disappointing”, but unsurprisingly tried to put a positive spin on things, saying: “The challenges we are facing during our strategic transformation manifested in a greater than expected way in Q2 2011.
“However, even within the quarter, I believe our actions to mitigate the impact of these challenges have started to have a positive impact on the underlying health of our business. Most importantly, we are making better-than expected progress toward our strategic goals.”
He added: “In Q2, our immediate action to manage unexpected sales and inventory patterns enabled us to create healthier sales channel dynamics.” Whatever that means.
Elop later said that Nokia has “increased confidence” in seeing the first Nokia Windows Phone 7 devices arriving this year. We reckon shareholders would’ve preferred “absolute confidence”; there’s still the chance it could be 2012 before the Sea Ray hits shelves.
The Canadian CEO was also keen to emphasise Nokia’s "significant intellectual property income", referring in part to a recent victory over Apple.
Phew. Crazy times for Nokia. Crazy times indeed.