Nokia has warned that its sales for Q2 will be ‘substantially lower’ than previously estimated.
The firm’s share prices have subsequently fallen by 17 per cent to a 13-year low, according to figures from Yahoo! Finance.
In a statement the firm has blamed ‘competitive dynamics’ in China and Europe particularly, and a shift towards cheaper devices, and ‘pricing tactics’ by it and its competitors.
It previously expected net sales of E6.1 billion to E6.6 billion, but has not given a figure on what they are revised down to. It has simultaneously scrapped annual forecasts.
While not so long ago dominating the mobile phone market, Nokia has more recently struggled to get on board with trend towards smartphones – ceding ground to HTC and Apple to name but two.
While continuing with its proprietary Symbian operating system, an alliance between it and Microsoft will see Windows Phone ship on higher end Nokia devices – a move both firms hope will boost their standing in the sector. Yesterday’s financial statement said the first of these devices will appear in Q4.
So, is it back to basics for Nokia? Or will the deal with Microsoft save its smartphone intentions? Would it be a good idea for the firm to simply concentrate on the lower end, where it still has significant share?
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