Shares in Finnish mobile phone giant Nokia dropped by 14 per cent on Wednesday (April 12th) after it warned that it expects to lose money for the first six months of this year.
It blamed strong competition for smartphone sales “particularly in India, the Middle East, Africa and China,” among many other factors.
The firm has struggled to compete with Apple and Samsung in recent months. To combat this, it changed from its own Symbian operating system to Windows Phone, however, this hasn’t arrested the slide yet.
It said in a statement that its mobile phone revenues would be around €4.2 billion (£3.4 billion), which would represent a 40 per cent year-on-year fall and translate into a loss of €126 million.
If this forecast comes to fruition, it would be the sixth quarter in a row in which Nokia’s mobile operating profit has declined. Its full first quarter results will be announced on April 19th.
Posted by Simon Thomas