Nokia lowers Q2 and full 2010 year forecasts

Nokia

Nokia today announced that it was lowering its outlook for both its fiscal Q2 and entire 2010 fiscal year forecasts.

During the second quarter 2010, multiple factors are negatively impacting Nokia’s business to a greater extent than previously expected. These factors include: the competitive environment, particularly at the high-end of the market, and shifts in product mix towards somewhat lower gross margin products. In addition, the recent depreciation of the Euro affects Nokia’s cost of goods sold, operating expenses and global pricing tactics.

Nokia had originally expected that Q2 sales in its Devices & Services group would fall in the range of &euro6.7 to €7.2 billion. They now expect to barely reach or even fall short of the lower end of that estimate.

For the full 2010 year, Nokia expects that its mobile device sales will remain flat and that its market share will drop from its 2009 levels as the overall market continues to grow. Smartphone sales in particular are under pressure as Nokia has failed to come up with a device that sparks customer interest the same way that the Apple iPhone and BlackBerry and Android devices.

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