Nokia shares fell 14.39% on the NASDAQ today after the company lowered outlook.
“Nokia Corp. warned Tuesday that it might not book a profit in its core business this quarter, as the world’s largest mobile-phone maker comes under intense pressure at both the high and low ends of its lineup,” Arild Moen reports for The Wall Street Journal.
“The Finland-based company faces tough competition from rivals such as Apple Inc. and Google Inc.,whose phones and operating platforms have proved more popular than Nokia’s,especially in the lucrative smartphone market,” Moen reports. “But Tuesday’s profit warning suggested that Nokia’s problems aren’t just limited to the smartphone market,as it said it was struggling to fight a shift in demand toward lower-priced,lower-margin handsets in Europe and China,where it also suffered from poor management.”
“The company said net sales at its devices and services division would come in substantially below the €6.1 billion to €6.6 billion it had forecast for the second quarter this year. Nokia had expected its devices and services division to post an operating margin of 6% to 9%,” Moen reports. “The results point to a rapid deterioration of Nokia’s business and put more pressure on Mr. Elop to defend the company’s market as he shifts to a new strategy built around phones powered by Microsoft Corp.’s mobile operating system.”
Moen reports, “Tuesday’s warning sent shares in Nokia tumbling in Europe. The stock fell 18% to close at €4.75 in Helsinki.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “GetMeOnTop” for the heads up.]
Beleaguered Nokia to shed 7,000 employees – April 27, 2011
Apple overtakes Nokia as world’s largest vendor of mobile handsets by revenue – April 21, 2011
Microsoft’s Windows Phone ’07 U.S. launch was a dud; Nokia worried? – April 12, 2011
Apple makes roadkill of deer-in-the-headlights CEOs – April 1, 2011
Microsoft to pay Nokia over $1 billion to use Windows Phone ’07 – March 7, 2011
Analysts not impressed with Nokia’s incoming CEO Elop – September 10, 2010