Shares of Nokia, the world’s largest maker of mobile phones, today fell more than 16% in the Helsinki Stock Exchange after announcing it expects to report losses in the first two quarters of the year .
The Finnish giant revised down its forecast for revenue and earnings for the first half of the year, mainly due to falling sales in India, Middle East, Africa and China, and the collapse of its margins in the segment “smartphones “(smart phones).
A week to present the official results for the first quarter of the year, Nokia announced that its operating margin between January and March will be 3% negative.
Net sales in this quarter will be placed around 4,200 million euros, down from 10.339 million euros in the same period of 2011.
In addition, Nokia expects that profit margins are similar or even lower in the second quarter due to “multiple negative factors,” including strong competition in the sector and the global economic situation.
“The disappointing results of the first quarter of 2012 and the poor prospects for the second quarter show that our devices and services business is still in the midst of transition,” he said in a statement the CEO of Nokia, Stephen Elop.
Still, Elop expects the launch of the new range of “smartphones” Lumia, equipped with the operating system Windows Phone from Microsoft, allow the company to increase its sales and profit levels in the medium term .
According to Elop, Nokia sold more than two million phones Lumia in the first quarter, at an average price of 220 euros.
Category: Business News