More losses as Nokia turnover dives

Nokia has admitted to another quarter of massive losses as it watched Apple and Samsung continue to ride roughshod through the smartphone market.

The company said it lost €1.53bn kroner (£1.2bn) in the second quarter of the year with turnover crashing by 19 per cent. Nokia is burning through cash at a rate analysts say would wipe it out within a couple of years as its sales growth has lagged behind its high development overheads.

However, Nokia showed its cash burn was not as bad as feared, boosting its shares by 11 per cent. The Finnish company attempted to calm fears for its future by saying sales of its new Lumia phones had doubled, albeit from a very low base.