Nokia Releases its Q2 Results for 2011

Follow the break to view the full breakdown of results to to hear Stephen Elop, Nokia’s CEO interpretation.

STEPHEN ELOP, NOKIA CEO:

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.

In Q2, our immediate action to manage unexpected sales and inventory patterns enabled us to create healthier sales channel dynamics, which led to greater business stability in the latter weeks of the quarter.

• -  Most notably we took action in China and Europe to address an inventory build-up that occurred in the first quarter of 2011.
• -  We took a more responsive approach to product pricing around the world.
• -  We have shifted our sales focus and marketing resources more towards retail interactions with consumers.
• -  We made changes in certain critical sales management.During this time of transition, we expect competitive pressures to continue. However, we have a clear strategy to address the concerns about our product competitiveness. In Q2, both our Smart Devices and Mobile Phones business units moved forward on their plans.
• -  In Smart Devices, those who already have viewed our early Windows Phone work are very optimistic about the devices Nokia will bring to market and about the long-term opportunities. Step by step, beginning this year, we plan to have a sequence of concentrated product launches in specific countries, systematically increasing the number of countries and launch partners.
• -  In Mobile Phones, early results of the Dual SIM product launches are very encouraging, and we are on track to deliver more products this year.