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As it braces for a potential drop in Lumia sales with the arrival of Windows Phone 8, Nokia will continue to reorganize and consolidate its operations to keep costs low, Elop said.
"First and foremost, we are taking actions to manage through this transition period," he told investors. "While Q2 was a difficult quarter, we are demonstrating our determination to carefully mange our financial resources, improve our operational model, and improve our competitiveness."
As part of this effort, Nokia in June revealed plans to cut 10,000 jobs through the end of 2013 and to close down three of its manufacturing facilities. The savings from these, and other cost-saving initiatives, are expected to be about $2 billion by the end of next year.
Looking ahead, Nokia said it projects its third quarter to be another challenging one as it continues to grapple with product transitions, particularly within its Smart Devices unit.