Profits at Nokia have fallen by 10% year on year to €439m but the partnership deal with Microsoft has finally been signed after 10 weeks of negotiations.
Nokia's Stephen Elop and Microsoft's Steve Ballmer
Sales rose by 9% year on year to €10.4bn but slumped by 18% compared to the last quarter of 2010. Devices and services fell 17% to €7.12bn compared to the final quarter of 2010, but rose 6% compared to the same period last year.
In its forecast, Nokia expects sales to fall further in the second quarter of 2011, to between €6.1bn and €6.6bn.
However, the deal with Microsoft, announced in the winter, has now finally been signed with new handsets with Microsoft operating systems available in late 2011 or early 2012.
Stephen Elop, chief executive of Nokia said: "In the first quarter, we shifted from defining our strategy to executing our strategy. On this front, I am pleased to report that we signed our definitive agreement with Microsoft and already our product design and engineering work is well under way.
"Following a solid first quarter, we expect a more challenging second quarter. However, we are encouraged by our roadmap of mobile phones and Symbian smartphones, which we will ship through the balance of the year. We are fully focused on delivering the needed accountability, speed and results to positively drive our future financial performance."
According to a Nokia blog post, signing the deal with Microsoft took place more quickly than expected, and the two companies have commited 'hundreds' of people to the project and called for developers to contribute to developing new apps and games for the Windows Phone platform.
Nokia's performance varies considerably from market to market. In northern Europe, sales fell 5% compared to the first quarter of 2010, and by 33% compared to the last quarter of 2010.
In North America the performance was worse, with sales slumping 36% year-on-year, and by 40% compared to the previous quarter, but starting from a much lower base.
China was the only market where there was growth on both measures, increasing 30% year-on-year and 13% quarter-on-quarter.
Sales were also down in Asia-Pacific, by 3% year-on-year and 18% quarter-on-quarter.
In Latin America, sales were down 22% quarter-on-quarter by up 29% year-on-year. In the Middle East sales were down 8% year-on-year but up 8% quarter-on-quarter.
Average selling price per phone also fell by 6% overall, to €155 for smartphones and €39 for feature phones.
Nokia's results follow contrasting numbers from rival technology companies.
Apple sales soared by 95% to achieve another record quarter on the back of iPads and iPhones, while sales of Sony Ericsson fell 22% in the first quarter, but the figures have not taken into account the launches of new Android-based handsets.
In its forecast, Nokia expects sales to fall further in the second quarter of 2011, to between €6.1bn and €6.6bn.
However, the deal with Microsoft, announced in the winter, has now finally been signed with new handsets with Microsoft operating systems available in late 2011 or early 2012.
Stephen Elop, chief executive of Nokia said: "In the first quarter, we shifted from defining our strategy to executing our strategy. On this front, I am pleased to report that we signed our definitive agreement with Microsoft and already our product design and engineering work is well under way.
"Following a solid first quarter, we expect a more challenging second quarter. However, we are encouraged by our roadmap of mobile phones and Symbian smartphones, which we will ship through the balance of the year. We are fully focused on delivering the needed accountability, speed and results to positively drive our future financial performance."
According to a Nokia blog post, signing the deal with Microsoft took place more quickly than expected, and the two companies have commited 'hundreds' of people to the project and called for developers to contribute to developing new apps and games for the Windows Phone platform.
Nokia's performance varies considerably from market to market. In northern Europe, sales fell 5% compared to the first quarter of 2010, and by 33% compared to the last quarter of 2010.
In North America the performance was worse, with sales slumping 36% year-on-year, and by 40% compared to the previous quarter, but starting from a much lower base.
China was the only market where there was growth on both measures, increasing 30% year-on-year and 13% quarter-on-quarter.
Sales were also down in Asia-Pacific, by 3% year-on-year and 18% quarter-on-quarter.
In Latin America, sales were down 22% quarter-on-quarter by up 29% year-on-year. In the Middle East sales were down 8% year-on-year but up 8% quarter-on-quarter.
Average selling price per phone also fell by 6% overall, to €155 for smartphones and €39 for feature phones.
Nokia's results follow contrasting numbers from rival technology companies.
Apple sales soared by 95% to achieve another record quarter on the back of iPads and iPhones, while sales of Sony Ericsson fell 22% in the first quarter, but the figures have not taken into account the launches of new Android-based handsets.
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