Nokia's sales slump makes Apple the leader

Nokia slipped into the red over the second quarter, losing ground to Apple, which became the world's biggest smartphone producer in the three months to June.

The Finnish group, pioneer in the fast-growing market with its Communicator line in the 1990s, slumped to a €368 million net loss, its first since 2009, as shipments of its smartphones fell 34 per cent to 16.7 million compared with a year ago.

Apple shipped more than 20 million of its iPhones over the three months, overtaking its European peer for the first time.

Its success underscored the challenge faced by Nokia, which has struggled to compete with rival smartphones from Apple and Blackberry-maker Research in Motion.

Chief executive Stephen Elop, who was brought in last year to turn Nokia around, said the challenges it faced as it tried to regain the initiative were "manifested in a greater than expected way" in the quarter.

This year, Elop unveiled plans to slash 4000 jobs and transfer 3000 to Accenture in a deal under which the consulting firm will take over the running of its Symbian operating system.

- Independent