Nokia Suffers Sharp Fall in Handset Sales

Nokia, the world's largest handset maker, said its sales fell 7% year-on-year in constant currencies to 9.28 billion euros in the second quarter of 2011, as its "smart devices" sales fell 32% to 2.37 billion euros and its mobile phone sales fell 20% to 2.55 billion euros. Nokia blamed the declines on competitive pressures and an inventory build-up in China and Europe.

Nokia CEO Stephen Elop said: "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."

Nokia Siemens Networks' sales climbed 21% in constant currencies to 3.64 billion euros boosted by a stronger infrastructure market in most regions and the acquisition of some assets from Motorola.   Excluding the acquired Motorola networks assets, Nokia Siemens Networks' net sales would have increased 13% year-on-year. source: Nokia statement