Lumia 1020

As Nokia hands over the bulk of its devices and services business to Microsoft, the company has published its interim financial report for Q1 2014, showing a year-on-year decline in handset sales of 30 percent. Today's numbers also reveal operating losses of €326 million ($452 million) on revenue of €1.929 billion ($2.68 billion) for the devices and services unit during its last quarter in Nokia's hands. The report blames "intense smartphone competition at increasingly lower price points and intense competition at the low end of our product portfolio" for the slide in sales, a continuation of the disappointing results posted in Q3 2014. The report also notes a sequential and year-on-year decline in average selling prices for devices, indicating that those who did buy Nokia phones shied away from higher-priced models.

Nokia finished the first quarter with gross cash of €6.9 billion and net cash of €2.1 billion; the company points out that this would've risen to €10.5 billion gross and €7.1 billion net had the Microsoft deal completed inside of Q1. As for the remaining three business units, Nokia's Networks division made €216 million (up 10 percent year-on-year) on revenue of €2.328 billion. Technologies, which focuses on the company's patent portfolio, made €86 million (up 18 percent) on revenue of €131 million. And HERE brought in €10 million from revenue of €209 million, up from its loss of €5 million in Q1 2013.

Earlier today Nokia named former Solutions & Networks head Rajeev Suri as its new CEO, to take over from May 1.

Source: Nokia; via: Engadget