Fire on Nokia’s Burning Platform Rages On
Shares of Nokia are plumbing the depths for a new 52-week low today following an ugly recalibration in the company’s guidance.
Citing “competitive dynamics and market trends,” Nokia this morning slashed its sales and profit forecasts for the the second quarter and tossed its 2011 earnings target. Evidently, things are so bad the company “believes it is no longer appropriate to provide annual targets for 2011.”
With slumping demand in China and Europe, and with Android devices continuing to undermine volumes and margins, the company is having difficulty stemming its market share losses. And because its first Windows Phone 7 devices are not expected at market until the fourth quarter–at the earliest–those difficulties are likely to continue for the remainder of the year.
“Strategy transitions are difficult,” Nokia CEO Stephen Elop said in a statement breaking the news. “We recognize the need to deliver great mobile products, and therefore we must accelerate the pace of our transition.”
Indeed. Nokia’s “burning platform” is now a full-blown conflagration. If this warning is part of a transition that could last well into 2012, it’s going to be a long couple of years.
Elop is scheduled to appear at D9 this week. Today’s news should make that session quite interesting.
[Image credit: visionshare/Flickr]