Jun 20, 2011

Nokia lowers devices and services outlook for Q2, increasingly confident about first Windows Phone in Q4


You know what happens when you tell the world that you're abandoning Symbian for Windows Phone? Right, Symbian sales dry up. No matter how many times you boast about plans to sell an additional 150 million new Symbian devices, and no matter how long you commit to supporting Symbian devices, the OS is essentially dead to developers and consumers alike. So, we're not surprised to hear that Nokia just lowered its devices and services outlook for Q2 of 2011. The updated guidance calls for devices and services net sales to be substantially below the EUR 6.1 billion to EUR 6.6 billion expected in Q2 due to lower than expected average selling prices on lower volumes. It also sees margins drifting below the expected range of 6 percent to 9 percent due to lower than expected net sales -- Nokia expects its non-IFRS operating margin to be "around breakeven." As as result, Nokia is also pulling back its annual targets for 2011 and will provide further updates as its situation becomes more clear.

On the positive side, Nokia does say that it has "increased confidence" that it will ship its first Windows Phone product in Q4 2011. Let's hope so.

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