Nokia, like RIM, is attemtping a tough transition. They both suffer from a few wounds, namely dwindling marketshare in their most vital industry.
But while RIM is debt-free with billions of cash in the bank, Nokia is bleeding red ink uncontrollably. Despite a new Canadian CEO, Stephen Elop, and a sharp refocus on the company’s mission—partnering with Microsoft in a big way—the company is sinking. And fast.
Nokia may have recently one a patent infringement case that sees Apple dish out on-going royalties, but Apple is making several billion dollars of profit every quarter at a high growth rate. Meanwhile, Nokia’s numbers, revealed today, paint a very different portrait.
Nokia’s second quarter of 2011 saw a net loss of well over $500 million. It sold 88 million handset, which in absolute terms is a strong number, but in relative terms is 20 percent less than a year ago.
Stephen admitted that the challenges Nokia is facing during its transformation “manifested in a greater than expected way.”
Nokia has yet to actually start shipping Windows phones, but it’s expected that the first one will launch by year’s end. Canadian availability has not yet been announced.