Nokia Sign

Nokia posted its second quarter 2012 earnings on Thursday in which the Finnish phone maker noted an operating loss of $1 billion for the quarter — a slight improvement over the $1.7 billion loss the company posted during the first quarter of this year.

The company's Devices & Services united said net sales were down 5% quarter-on-quarter, even though sales of its Lumia-branded handsets increased to 4 million units for the quarter. Mobile phone volumes overall increased quarter-over-quarter and year-on-year to 73 million units, the company said.

"Nokia is taking action to manage through this transition period. While Q2 was a difficult quarter, Nokia employees are demonstrating their determination to strengthen our competitiveness, improve our operating model and carefully manage our financial resources," Nokia CEO Stephen Elop said. "We shipped four million Lumia Smartphones in Q2, and we plan to provide updates to current Lumia products over time, well beyond the launch of Windows Phone 8. We believe the Windows Phone 8 launch will be an important catalyst for Lumia. During the quarter, we demonstrated stability in our feature phone business, and enhanced our competitiveness with the introduction of our first full touch Asha devices."

[via Nokia]