Nokia, Microsoft’s tightest Windows Phone hardware partner, reported a $1.2 billion loss in its first quarter results today.
Net sales fell 29 percent from the year-ago period, and 26 percent from last quarter. The year-over-year plunge in net sales for its smart devices was even worse: 52 percent.
The demand for Nokia’s Windows Phones — the result of a now more than year-old partnership in which Nokia is using Windows Phone as its primary smartphone operating system — was not enough to offset the dive in sales for Nokia’s homegrown Symbian operating system, which Nokia is phasing out.
Nokia CEO Stephen Elop said in a statement that though the company had launched four Lumia Windows Phone devices ahead of schedule, the “actual sales results have been mixed. We exceeded expectations in markets including the United States, but establishing momentum in certain markets including the UK has been more challenging.”
The company called the launch earlier this month of the flagship Lumia 900 on AT&T in the U.S. “encouraging.”
Adding to Nokia’s losses was a $1 billion restructuring charge for Nokia Siemens Networks.
Microsoft is scheduled to report its Q3 earnings later today.