Impacted by decreasing sales of its flagship Windows phone, Finnish giant Nokia on Thursday reported a third-quarter net loss of (euro) 969 million ($1.27 billion). It reported fall in revenue by 19 percent.

Nokia Group net sales in Q3 2012 were EUR 7.2 billion, down from EUR 7.5 billion in Q2 2012. Nokia Siemens Networks net sales increased quarter-on-quarter and year-on-year to EUR 3.5 billion.

“Lumia Q3 volumes decreased quarter-on-quarter to 2.9 million units, as we shared the exciting innovation ahead with our new line of Lumia products”, the company said.

It said mobile Phones Q3 volumes increased quarter-on-quarter to 77 million units; strong sales start for new Asha full touch smartphones, with volumes of 6.5 million units.

Commenting on the Q3 results, Stephen Elop, Nokia CEO, said, "As we expected, Q3 was a difficult quarter in our Devices & Services business; however, we are pleased that we shifted Nokia Group to operating profitability on a non-IFRS basis.”

“In Q3, we continued to manage through a tough transitional quarter for our smart devices business as we shared the exciting innovation ahead with our new line of Lumia products”, the company said in statement.

“In our mobile phones business, the positive consumer response to our new Asha full touch smartphones translated into strong sales. And in Q3, our mobile phones business delivered a solid quarter with sequential sales growth and improved contribution margin”.

In Location & Commerce, the comnay said it made progress establishing its platform offering with customers like Amazon. This is in line with our plan to expand our location offering to more customers.

It said that Nokia Siemens Networks had a remarkable quarter in which it achieved record profitability on a non-IFRS basis and the Nokia Siemens Networks cash balance increased for the fourth quarter in a row.

While we continue to focus on transitioning Nokia, we are determined to carefully manage our financial resources, improve our competitiveness, return our Devices & Services business to positive operating cash flow as quickly as possible, and ultimately provide more value to our shareholders."