Nokia has just posted its Q3 sales results and things aren't looking too great for the company. The bottom line is that Nokia has managed a $94 million net loss in its third quarter with a worrying 39 per cent drop in smartphone sales.

CEO Stephen Elop has responded to the worrying financial results stating: 

"I am encouraged by our progress around the first Nokia experience with Windows Phone, and we look forward to bringing the experience to consumers in select countries later this quarter. We then intend to systematically increase the number of countries and launch partners during the course of 2012."

Looks like all eyes within Nokia are now on Windows Phone to turn the company's fate around. 

"To position Nokia for the future, we are driving fundamental changes in how we operate. In addition to the changes announced in April, in Q3 we announced plans for structural changes in manufacturing, Location & Commerce and supporting functions. The planned changes we have initiated are difficult but necessary in order to align the company to our strategy." said Elop. 

Nokia was most likely aware that these results were going to be bad. The company has been in a serious period of transition of late, moving towards Microsoft in the hope that Windows Phone 7 can re-affirm its position in the smartphone market. 

As Elop states, this takes time and does require some painful financial results on route. Ultimately Windows Phone 7 has got to be Nokia's last shot. A 39 per cent drop in sales is huge and despite Nokia's position in the dumbphone and affordable handset market, more and more people are now adopting things like Android as the go-to for phones, expensive or not. 

Fingers crossed for next week's Nokia Windows Phone 7 launch, it's going to have to be a good one. 

What do you think? Still have faith in Nokia's smartphones? Let us know in the comments below ...