Nokia net sales dips by 29% in Q1 2012

Nokia Group is awaiting a straw as the boat goes sinking. Nokia blames the tornado - huge competition and huge restructuring cost. Nokia's gross profit decreased to Euro 2.03 million.

The consolidated net sales in the first quarter 2012 dipped by Euro 3.4 billion with a year-on-year growth rate of -29%. Its net sales declined from Euro 10.4 billion in Q1 2011 to Euro 7.4 billion in Q1 2012.

There is 40% reduction in the y-o-y growth rate of Devices and Services segment in Q1 2012. There is dip in its sales in all the regions - Europe, Middle East & Africa, Greater China, Asia Pacific, North America and Latin America. In Asia Pacific there has been 28% y-o-y reduction in its Q1 2012 sales as compared to the corresponding quarter.

Location and Commerce sales increased by 19% from Euro 2.3 billion in Q1 2011 to Euro 2.8 billion in Q1 2012.

The y-o-y sales of Nokia Siemens Networks sales diminished by 7% in Q1 2012. Except in North America region sales declined in all the other regions in this quarter. There is 11% dip in Asia Pacific region in Q1 2012 as compared to the corresponding quarter.

Post the re-structuring in 2011, Nokia has three businesses - Devices & Services, Location & Commerce and Nokia Siemens Networks and four operating and reportable segments - Smart Devices and Mobile Phones within Devices & Services, Location & Commerce and Nokia Siemens Networks.