Quarter2 2011 pretty Bad for Nokia!

One word defines Nokia's quarter: UGLY!. 

Here's the scorecard:

• Net sales of EUR 9,275M vs EUR 10,003M in Q2 2010;
  
• Operating loss of EUR 487 million vs operating profit EUR 295M;
  
• Reported EPS (diluted) of EUR -0.10 vs EUR 0.06.

Worse still, Smartphone sales are down 32% YoY and 33% QoQ.

For the first time in living memory, according to Asymco's Horace Dediu, Nokia has lost the #1 smartphone maker title--to Apple.

Stock's up though, so there's something the market liked!

It's worth noting that this isn't attributable to Nokia's shift to Microsoft Windows. Nokia hasn't come out with a Windows phone yet. 

But the big argument for Nokia being a survivor was its huge distribution network, particularly outside the US, that would allow it to hold marketshare and push Windows phones. It doesn't seem to be happening. Instead, it seems it's slowly deteriorating, and it's less and less clear that it can be saved.

All in all, painful to watch!