The company was down as much as 16 percent today to $6.79 per share, a number last seen in June 1998.
Nokia lowered its operating margin to 0 percent for the Q2 2011, down from an expected 6-9 percent, a massive collapse.
Says analyst Thomas Langer:
I think it is devastating now that shortly after the AGM we have this very negative news out from Nokia. Q2 and Q3 is one story, but I think this will raise doubts about the potential recovery trend based on Mango.
What worries more is that Nokia will not be the only one with Mango and the Nokia hardware and user interface has to be more compelling than those from competitors.
Given the internal turmoil that will be generated by this news it is increasingly difficult to see that Nokia can leapfrog one handset generation and be on par with the competition in early 2012. Investors should be more than concerned about the dividend possibility.
Nokia is expected to launch a number of Windows Phone 7 devices globally by then end of this year.
Written by: Andre Yoskowitz @ 31 May 2011 11:52
