Feeds

Nokia gives up predicting sales

Shares tumble on storm warning

Top 5 reasons to deploy VMware with Tegile

Nokia is predicting Q2 sales to be "substantially below" its previous estimates, and says it won't provide public targets anymore as the company tries to adjust to the new reality.

In its statement to the stock market Nokia doesn't say how much worse things will be, only that "multiple factors are negatively impacting Nokia's Devices and Services" and that its previous estimate of €6.1bn to €6.6bn for the second quarter of 2011 could be as much as 9 per cent off, and that the company feels unable to predict what's going to happen for the rest of the year.

The fall is attributed to Nokia being unable to shift enough high-end (and high-margin) handsets, which is no great surprise given the mess the company has made of its smartphone strategy over the last few years.

In a statement Stephen Elop, Nokia's CEO, said the company must "accelerate the pace of our transition" and that he remained confident that Nokia would have Windows Phone handsets out this year.

The company also pointed out that it has started shipping a dual-SIM handset for the first time. Dual SIMs enable customers to take advantage of multiple operator tariffs; such handsets are common in most of the world but disliked by western operators.

Nokia is also steaming ahead with cuts to prices, and expenses, and increasing point-of-sale marketing.

But that's not reassured the markets much, with Nokia's share price dropping 15 per cent on the news.

We won't know how bad that news really is until the Q2 results on 21 July, but with this release Nokia is letting the world know that the news won't be good. ®

Security for virtualized datacentres

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
EE buys 58 Phones 4u stores for £2.5m after picking over carcass
Operator says it will safeguard 359 jobs, plans lick of paint
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
Drag queens: Oh, don't be so bitchy, Facebook! Let us use our stage names
Handbags at dawn over free content ad network's ID policy
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.