Nokia may already expect disappointment

Nokia may be ready to warn of poor phone sales in advance of its results, analysts at Macquarie Group said. In a note to investors, Macquarie understood Nokia could report low sales and dropping income as soon as next week. The shortfall would come from both a disappointing phone lineup and from Nokia's insistence on tying prices to the US dollar rather than the euro, which in the spring would have forced price cuts.

Part of the problem would stem from the uncertainty surrounding the launch of the N8. Although not due to launch until the summer, the lack of any official release date makes expectations difficult. For the existing line, Nokia likewise faces a mix of "heavy competition" and "softening demand" for what it offers, Macquarie wrote.

Nokia has lost a significant amount of its market share in recent years, especially in the smartphone category where it struggles to pass 39 percent. Apple and RIM have both taken share from Nokia through more aggressive phone updates and focuses on touch and messaging, neither of which have been Nokia's strongest points. The N8 will be Nokia's first phone with multi-touch, shipping over three years after the first iPhone introduced the feature.

By Electronista Staff