Nokia shares tumble as firm abandons targets
NOKIA’S share price tumbled to its lowest in 13 years yesterday after the mobile phone maker abandoned hope of meeting key targets it set just weeks ago.
Shares plunged 18 per cent to €4.75 (£4.16), wiping some €3.8bn off its market value as investors worried that Nokia, once a leading force in the industry, had lost too much market share to ever regain its former standing.
And the change in outlook raised fresh doubts over whether the company’s new chief executive Stephen Elop can deliver on the turnaround he promised in February.
Elop, brought in last year to help revive Finland’s flagship technology company, blamed both weak sales and price cuts. He warned net sales from its devices and services business in the second-quarter will be “substantially below” its previous forecast of between €6.1bn and €6.6bn.
“Android is gaining strength. Apple is Apple, of course,” he told analysts. He also said management issues had hurt business in China. “Given the unexpected change in our outlook for the second-quarter, Nokia believes it is no longer appropriate to provide annual targets for 2011,” the company said.