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Nokia stock falls to 13-year lows as the company lowers revenue forecast

Written by Andre Yoskowitz (Google+) @ 31 May 2011 11:52 User comments (2)

Nokia stock falls to 13-year lows as the company lowers revenue forecast Nokia, the world's largest mobile phone maker, saw its stock fall to a 13-year low today after the struggling company warned its fiscal year outlook would fall way short of previous guidance.
The company was down as much as 16 percent today to $6.79 per share, a number last seen in June 1998.

Nokia lowered its operating margin to 0 percent for the Q2 2011, down from an expected 6-9 percent, a massive collapse.

Says analyst Thomas Langer:

I think it is devastating now that shortly after the AGM we have this very negative news out from Nokia. Q2 and Q3 is one story, but I think this will raise doubts about the potential recovery trend based on Mango.

What worries more is that Nokia will not be the only one with Mango and the Nokia hardware and user interface has to be more compelling than those from competitors.

Given the internal turmoil that will be generated by this news it is increasingly difficult to see that Nokia can leapfrog one handset generation and be on par with the competition in early 2012. Investors should be more than concerned about the dividend possibility.


Nokia is expected to launch a number of Windows Phone 7 devices globally by then end of this year.

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2 user comments

131.5.2011 19:24

Wow all this because of the Microsoft agreement. Really don't know what the future for nokia is gonna be like now. I think their market share is gonna fall big time. Their hardware better be really rock solid to keep things going for them.

This message has been edited since its posting. Latest edit was made on 31 May 2011 @ 19:28


231.5.2011 20:55
oappi
Inactive

Imho nokia has never been best on hardware side, but they have managed to take more out of it than others... My quess is that nokia is going to continue struggling when they start selling windows phones or can anyone tell me what microsoft is going to offer that google or apple can't offer? Nokia Xbox-n-gage? Also it is not just about the phones it is their image of being total dicks when it comes to warranty, and since their phones are not the worlds lasting piece of hardware it will eventually show on sales.

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