Nokia Loses More Than €1.57B

1:10 PM -- There isn't much good news for Nokia Corp. (NYSE: NOK) these days. The Finnish giant today announced a first-quarter loss of €1.57 billion (US$2.05 billion), even greater than expected, and says it will now cut costs even further at its devices division. (See Euronews: Nokia's Q1 Device Disaster.)

Minutes after it unveiled its eye-watering financials, the device giant announced the departure of its global sales leader and a revamp of its sales reporting structure. (See Nokia Streamlines Sales Management.)

Colin Giles, the Nokia Leadership Team member with global responsibility for all products and services sales, is leaving on June 30 after 20 years at the company. From that date, Nokia's four regional senior vice presidents and the head of sales will report directly to Nokia Executive Vice President of Markets Niklas Savander.

Giles, a 48-year-old Australian who has been based in China for many years, held a number of senior positions in Nokia's Asia/Pacific operations before being appointed to Nokia's top executive team in February 2011. (See Nokia's New Top Team.)

Nokia says Giles has decided to leave to be closer to his family. But with first-quarter sales at the company's Devices & Services division down 40 percent compared with a year ago, his position may have been under threat (though it's clearly not the sales team's fault that Nokia doesn't have a competitive portfolio of devices).

Giles is staying on until the end of June, so he will experience the reaction to Nokia's poor start to the year (and see if he can help improve matters in the second quarter) before he clears his desk. (See Don't Count Nokia Out Just Yet, Is Nokia Losing Operator Support? and Nokia's Moody's Blues.)

— Ray Le Maistre, International Managing Editor, Light Reading

gadget-tech 12/5/2012 | 5:35:35 PM
re: Nokia Loses More Than €1.57B

I previously sold cell phones for many years and Nokia was great at making basic mobile phones, such as flip phones, and a lot of people trusted nokia and preferred nokia over other mobile phones.Customers felt Nokia was a very durable and reliable brand to go with, but once smartphones began to get really popular and android phones started improving their features and design, most basic phones became almost extinct.Thats when nokia started losing a lot of ground, and i feel they made a mistake by choosing to make a comeback with windows phones.They would of probably had much better results and more innovative designs if they would of went with android instead of windows.  

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