Nokia (NOK $7.10 -1.10) now expects Devices & Services net sales to be
substantially below its previously expected range of EUR 6.1 billion to EUR6.6
billion for the second quarter 2011.
This update is primarily due to lower than previously expected average selling
prices and mobile device volumes. Co now expects Devices & Services non-IFRS
operating margin to be substantially below its previously expected range of 6%
to 9% for the second quarter 2011. This update is primarily due to lower than
previously expected net sales.
While visibility is very limited, Nokia's current view is that second quarter
2011 Devices & Services non-IFRS operating margin could be around breakeven...
Given the unexpected change in our outlook for the second quarter, Nokia
believes it is no longer appropriate to provide annual targets for 2011.
However, Nokia expects to continue to provide short-term quarterly forecasts in
its interim reports as well as annual targets when circumstances allow it to do
so.
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.






