Nokia announced its first net loss of €559m. The main reasons are Nokia – Siemens joint venture and poor demand.

Nokia, the world’s largest mobile phones maker has reported its first net loss since 1996. The main reasons are the failure of joint venture with Siemens and the drastic fall in demand. The company reported a loss of €559million when compared to a profit of €1.09 billion a year earlier. A significant decline in sales has brought down the figures to €9.8 billion. Bloom berg analysts expected a profit of €367million and sales to be about €10.03billion.

According to Espoo, a Finland based company the goodwill of the Nokia-Siemens is figured out as €908million. Nokia has maintained its handset market share of 38% though the Smart-phone sales have come down.
Nokia Siemens joint venture reported an operation loss of €1.6billion over 2007 & 08. At present the market value of the company comes to about €35.9billion.