Nokia has said that its devices and services Q1 net sales decreased 25% quarter-on-quarter to EUR 2.9 billion. This is despite 27% increase in Lumia smartphones sales to 5.6 million units, reflecting increasing momentum.

The company said that this reflects that competitive industry dynamics and an estimated higher than normal seasonal decline in the market addressable by Mobile Phones.

Its mobile phones Q1 volumes decreased 30% quarter-on-quarter to 55.8 million units. Revenue fell 20% to 5.85bn euros, down from 7.35bn euros a year earlier.

Nokia Group ends first quarter 2013 with a strong balance sheet and solid cash position. Gross cash was EUR 10.1 billion and net cash was EUR 4.5 billion.

It said that group strengthened its net cash position by approximately EUR 120 million sequentially. Nokia Siemens Networks contributed approximately EUR 210 million to the Nokia Group net cash position.

Stephen Elop, Nokia CEO, said, “"At the highest level, we are pleased that Nokia Group achieved underlying operating profitability for the third quarter in a row. While operating in a highly competitive environment, Nokia is executing our strategy with urgency and managing our costs very well.

“Our Mobile Phones business faces a difficult competitive environment, and we are taking tactical actions and bringing new innovation to market to address our challenges”, he said.
   
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