Nokia has posted a surprise increase in sales and profit, but still plans to slash 1,800 jobs.
Sales were up 5% year-on-year to 10.27 billion, while profit climbed to 403 million from a 426 million loss in the same quarter lost year.
While Nokia’s smartphones are often assumed to be its weak spot, it shipped 61% more converged devices – smartphones and mobile computers – than a year before.
The quarterly results are the first since Olli-Pekka Kallasvuo was replaced by Stephen Elop as CEO last month.
We have the talent, the capacity to innovate, and the resources necessary to lead through this period of disruption
“In the five weeks since joining Nokia, I have found a company with many great strengths and a history of achievement that are second to none in the industry,” Elop said. “And yet our company faces a remarkably disruptive time in the industry, with recent results demonstrating that we must reassess our role in and our approach to this industry.”
Those changes include simplifying the development of Symbian smartphones, cutting time to market and improving response to consumer demands by switching to common tools for app development and streamlining software development, Nokia said.
While rivals such as Android and Apple have hurt Nokia’s market share and reputation in the industry, Elop refused to count his new firm out.
“Some of our most recent product launches illustrate that we have the talent, the capacity to innovate, and the resources necessary to lead through this period of disruption,” Elop added, referencing the recently released Nokia N8.
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