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Nokia warns of lower phone oultook, ships 2m Lumias

updated 08:50 am EDT, Wed April 11, 2012

Nokia predicts dire Q1 esults

Nokia sent out a warning on Wednesday that its results for the first quarter of 2012 would be worse than expected as its smartphone sales continued to struggle. Its operating margin would now be down by three percent instead of flat, while that for the just-started spring quarter would be similar or lower. "Competitive industry dynamics" and tighter profit margins were to blame, Nokia said, making clear allusions to fiercer competition from Android and the iPhone.

While improving versus the million-plus units of the fall, Windows Phone sales weren't growing quickly enough to offset plunges for Symbian devices. Nokia is now known to have moved two million smartphones in the first three months of 2012, which is commonly believed to be dominated by the Lumia 800, but is still largely depending on its outgoing OS for the core of its sales. CEO Stephen Elop still saw it as part of a gradual shift.

"Our disappointing Devices & Services first quarter 2012 financial results and outlook for the second quarter 2012 illustrates that our Devices & Services business continues to be in the midst of transition," Elop claimed.

Among some of the strategies to bolster its performance, Nokia was both "increasing investments" to both grow the Lumia line and put it in more countries, as well as to invoke "tactical pricing actions" for its S40 feature phones as new phones came into play. The Finnish firm would speed up cost-cutting measures and might undertake "significant structural actions" if necessary, implying added job cuts.

Windows Phone sales are likely to go up in the spring following the launches of the Lumia 900 and Lumia 610. The lowered forecast could still see Nokia bleed more market share again and dash Microsoft's hopes of buying a larger position for Windows Phone through its multi-billion dollar Nokia deal.



By Electronista Staff
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Comments

  1. freddymac

    Fresh-Faced Recruit

    Joined: Jul 2010

    +3

    How's that

    M$ partnership working out for you Nokia? Hahahahahah..... Start the death clock.....

  1. jdsonice@gmail.com

    Fresh-Faced Recruit

    Joined: Oct 2009

    +3

    Damn you Nokia!!

    My stock in Nokia continues to plunge :-( My only hope is that Ballmer will pull one out of his ... and purchase Nokia but then it would affect my MS stock - damn I am screwed. Thank god I also own Apple. My a** is saved.

  1. Mr. Strat

    Junior Member

    Joined: Jan 2002

    +2

    It ain't the hardware

    It's the software. Nobody wants Windows Phone 7. And this is just a prelude to the cluster that will be Windows 8.

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