Shares of Nokia plummeted nearly 15 percent Wednesday morning as the Finnish OEM lowered its first-quarter 2012 outlook for Devices & Services.
Nokia lowered its non-IFRS Devices & Services operating margin in the first-quarter 2012 to negative 3 percent, compared to the previously expected range of “around breakeven,” with a range of above or below approximately 2 percentage points.
Nokia estimates that Devices & Services net sales in the first quarter of 012 were $5.5 billion, comprised of Mobile Phones net sales of $3.02 billion (71 million units), Smart Devices net sales of $2.23 billion (12 million units), and Devices & Services “Other” net sales of $263 million.
The company said it sold more than 2 million Lumia devices in the first quarter at an average selling price of approximately $289. The company says it has seen sequential growth in Lumia device activations every month since starting sales of Lumia devices in November 2011. Lumia has gained market share with both distribution partners and consumers. The Windows Phone ecosystem is also attracting developers and has expanded with more than 80,000 applications available.
Stephen Elop, president and CEO of Nokia, said in a statement that the company is clearly still in flux as it makes the switch to Microsoft's Windows Phone operating system.
"Within our Smart Devices business unit, we have established early momentum with Lumia, and we are increasing our investments in Lumia to achieve market success," Elop wrote, adding that this past weekend's launch of the Lumia 900 with AT&T in the United States points to strengthening operator and distributor partnerships.
Subscribe to:
Post Comments (Atom)
0 comments:
Post a Comment