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Massive Q4 Losses Posted by Nokia Despite Payout from Microsoft

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Nokia house headquarters head office Espoo FinlandESPOO, Finland – A Q4 financial earnings report has shown that handset manufacturer Nokia has made a huge loss in the fourth quarter of last year despite receiving a significant payment from Microsoft, making it the third quarter in a row that it has made a loss.

The revenue for Nokia was €10 billion over the last year which was a year-on-year drop of 21 percent and its profits fell from a fourth quarter 2010 figure of €884 million to an actual loss in the last quarter of €954 million. The key factors in this continuing loss were a drop in mobile phone sales by 23 percent to €3.04 billion and a fall in smartphone sales to €2.75 billion, which was a 38 percent reduction in comparison to the same quarter in 2010.

Even a new deal with Microsoft couldn’t help Nokia with its drop in revenue with a new agreement made between the two giants. The payment was made during Q4 of 2011 and is part of what the two companies are calling a “broad strategic agreement” which will see Microsoft making “platform support payments” to Nokia whilst it in return pays Microsoft for licensing payments for its software.

Overall these payments should begin to make a difference in the revenue Nokia will be earning but even with these payments it will still take a lot more for Nokia to get back on track.

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By , on Jan 29th, 2012 GMT +2

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