Nokia Corporation, a worldwide manufacturer and seller of mobile devices as well as Internet and digital mapping and navigation services provider, reported that it anticipated lower second quarter and full year sales, made the mobile phone maker shares tumbled more than 14.00% on the New York Stock Exchange.
The company disclosed that several factors played their role in contributing to the depressed sales expectations, included lowering demand in China and Europe, a shift in consumer’s buying habits towards lower priced phones and increased discounts offered by Nokia.
Nokia Corporation (NYSE:NOK) proclaimed that second quarter sales in its devices and services division, would not meet up the range of $8.80 billion to $9.5 billion that it estimated in April. In addition, its operating margin would be below than 6.00% to 9.00% range, it had previously expected.
With intimations of limited visibility, the firm had reported that the adjusted operating margins could be around break even.
The Finland based company stated that strong competition, market trends and a shift toward cheaper devices were factors affecting Nokia’s outlook.
NOK announced that its previous quarterly and annual forecasts were no longer valid, and it would not issue any further whole year guidance for the rest of 2011 as it asked investors to ignore previously reported third and fourth quarter targets and also the full year expectations.
President and CEO of Nokia, Stephen Elop, said that company had been undergoing some hits during the changeover period and Nokia must switch toward a smoother and faster one.
Elop added that its first product with the Windows Phone operating system would probably ship in the fourth quarter, while Nokia would announce its existing quarter financial results on July 21.
The company disclosed that several factors played their role in contributing to the depressed sales expectations, included lowering demand in China and Europe, a shift in consumer’s buying habits towards lower priced phones and increased discounts offered by Nokia.
Nokia Corporation (NYSE:NOK) proclaimed that second quarter sales in its devices and services division, would not meet up the range of $8.80 billion to $9.5 billion that it estimated in April. In addition, its operating margin would be below than 6.00% to 9.00% range, it had previously expected.
The Finland based company stated that strong competition, market trends and a shift toward cheaper devices were factors affecting Nokia’s outlook.
NOK announced that its previous quarterly and annual forecasts were no longer valid, and it would not issue any further whole year guidance for the rest of 2011 as it asked investors to ignore previously reported third and fourth quarter targets and also the full year expectations.
President and CEO of Nokia, Stephen Elop, said that company had been undergoing some hits during the changeover period and Nokia must switch toward a smoother and faster one.
Elop added that its first product with the Windows Phone operating system would probably ship in the fourth quarter, while Nokia would announce its existing quarter financial results on July 21.
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