Nokia still struggling in smartphone market as Q3 sees year-on-year profits dive

Nokia's struggles continue after the firm revealed third-quarter operating profits were down 60 per cent year-on-year and sales of high-end smartphones slumped by 39 per cent.

The Finnish manufacturer claimed the smartphone sales decline was due to significantly lower volumes in its sales channel, putting more pressure on the firm's first Windows Phone devices, set to be unveiled next week at Nokia World in London.

Sales of feature phones suffered a less dramatic dip, down 14 per cent, while the firm actually gained market share in countries such as India, where it shipped 18 million dual-SIM devices in the quarter.

Chief executive Stephen Elop was optimistic about the results, noting that the firm is showing signs of improvement, but added there are still many steps to go in the "journey of transformation".

"During the third quarter, we continued to take the action necessary to drive the structural changes required for Nokia's long-term success," he noted in the earnings report.

"I am encouraged by our progress around the first Nokia experience with Windows Phone, and we look forward to bringing the experience to consumers in select countries later this quarter."

Francisco Jeronimo, research manager of European mobile devices at IDC, explained that Nokia's transition from Symbian to Windows Phone has been painful, but that it's the right move in the long term.