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Nokia shares down

Bapun Raz

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World’s biggest mobile maker by volume, warned on Tuesday that sales and margins would fall well below its previous guidance and dropped its full-year outlook, sending its shares down 12 percent.

Nokia has been losing market shares to iPhone and Android. Nokia said it expected its non-IFRS operating margin for Devices & Services could be around break-even in the second quarter.That compared with previous guidance for a margin in the range of 6 percent to 9 percent in the period.

Financial analyst comments on this-

CAROLINA MILANESI, GARTNER

The problem that Nokia is facing, especially in those markets that are operator-controlled like Europe, is that they’re going to have to reduce prices considerably in order to stay competitive. Operators are not going to be prepared to subsidise handsets where they don’t see demand.

It sounds like there’s intensive competition from the white box vendors in emerging markets like China.

All these were things that Nokia really should have expected.
http://www.mobilespedia.com/2011/06/nokia-shares-down/
 
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