Nokia, based in Finland, reported on Thursday another quarterly loss. The latest loss for the smartphone maker was its sixth consecutive quarterly loss. The company also announced that its cash reserves had nearly been depleted. This underlines how much Nokia is relying on high sales from the new line of mobile devices it has that will be hitting store shelves sometime in November.
Net losses for the company’s third quarter totaled $1.27 billion, compared to an $87 million loss during the same quarter one year ago. However, the loss was narrower than the second quarter of this year, which was $1.8 billion.
Wall Street analysts had expected the company to announce a loss of around $900 million. The cash position for the company had fallen to $4.5 billion at the end of the quarter.
Nokia’s CEO Stephen Elop said in a company statement that it had been a very difficult third quarter, which they expected it would be. Nevertheless, he said the company was pleased with is phone business and with Nokia Siemens Networks, its wireless network business, which reported a profit for the third quarter of more than $235 million.
At one time, Nokia had been the largest manufacturer of mobile handsets in the world however, losses have been bigger since it started using the operating system from Microsoft to power all of its new smartphones.
The company strategy was very risky, but its goal was to stave off the dropping sales as its customers were enticed by the chic lines and cool features of its competitors such as Apple’s iPhone and Samsung’s Galaxy line.
Sales in Nokia feel to $9.3 billion for the quarter that ended on September 30. That figure is only about half of what it had been during 2010 when Elop took over the reins of the company.