class=’ ‘>Nokia lowers Q1 results outlook despite shifting 2 million Lumia handsets
Nokia has lowered its Q1 devices and services outlook ahead of its earnings call, despite shifting two million Lumia handsets
Published on Apr 11, 2012
Published on Apr 11, 2012
Nokia has lowered its Q1 2012 results predictions ahead of its quarterly earnings call, despite shifting two million Lumia handsets in the first three months of 2012.
Nokia said that it expects its Devices & Services operating margin to be negative by around three per cent – it originally expected to break even. Factors that contributed to this negative result were increased competition and lower-than-usual sales.
Nokia claims these worse-than-expected results are the by-product of company in transition. Nokia is gradually switching over to Windows Phone from Symbian – teething issues are to be expected, especially since Windows Phone has yet to gain any real traction with consumers.
Going into Q2 2012, Nokia said that it expects it to be much the same as Q1 – negative operating margins.
‘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,’ said Stephen Elop, Nokia CEO.
He added: ‘within our Smart Devices business unit, we have established early momentum with Lumia, and we are increasing our investments in Lumia to achieve market success. Our operator and distributor partners are providing solid support for Windows Phone as a third ecosystem, as evidenced most recently by the launch of the Lumia 900 by AT&T in the United States.’
Nokia has said it will continue to increase its focus on accelerating Lumia sales, as well as on lowering the company’s cost structure, improving cash flow and maintaining a strong financial position.
‘We are continuing to increase the clock speed of the company,’ said Elop. ‘The change is tangible, and we are proud of the way Nokia employees are quickly responding to the needs of consumers and partners.’
Nokia will provide full first quarter results and more details when it reports its first quarter 2012 results on April 19, 2012.
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