Things haven't been easy for the Finnish cell phone giant Nokia, who released a press release today stating that Q2 devices and services revenue will be "substantially below its previously expected range of EUR 6.1 to EUR 6.6 billion". They blame lowered margins, a shift toward less expensive devices, pricing tactics by Nokia and "certain competitors" and competitive dynamics particularly in China and Europe.
Here's some more relevant from Nokia's statement:
"Nokia's previous targets for the third quarter, fourth quarter, and full year 2011 were: 1) Net sales in Devices & Services to be at approximately the same level in the third quarter 2011 as in the second quarter 2011, and seasonally higher in the fourth quarter 2011, compared to the third quarter 2011; 2) Devices & Services non-IFRS operating margin to be between 6% and 9% in 2011. These targets are no longer valid.
Nokia is taking immediate action to address the issues that are impacting its Devices & Services business. Nokia's high-level strategic objectives and targets remain unchanged.
- Nokia is continuing to invest to bring new innovative capabilities to its Symbian line up. In addition, Nokia has taken price actions on its current smartphone portfolio, and Nokia is intensifying its focus on retail point-of-sales marketing. - Nokia started shipping its new dual-SIM devices last week."
And here's the good news:
"Nokia remains pleased with its progress on its Windows Phone strategy, and has increased confidence that the first Nokia product with Windows Phone will ship in the fourth quarter 2011."
So it looks like we won't have to wait until 2012 for Nokia Windows Phones. Given their excellent hardware design capabilities and how truly impressive Windows Phone Mango (the new OS version slated for a fall 2011 release) looks, we'll be thrilled if Nokia has these ready for the holiday shopping season or sooner!
-------------------- Lisa Gade Editor in Chief, MobileTechReview
Nokia lowers Q2 outlook, good news is Nokia Windows Phone coming sooner