Nokia Expects Lower Profit Margin In Q2 Of 2012: [REPORT]

Nokia cuts 4000 jobs

Nokia has recently updated its Q1 financial performance guidelines for 2012. According to the Finnish mobile handsets manufacturer, over 2 million Windows Phone based Lumia Smartphones were sold in the Q1 of this year. The company has revised all ‘pros and cons’ of Q1 and has pointed out numbers of factors which were responsible for affecting the company’s ‘Device & Services Business’ to a greater extent. The company could not stand down to its previously expected figures. The is reason is quite obvious that the company could not manage to do a good business in some specific markets like India, Middle East and Africa, and China–where gross margin declined below the expected value in Q1 due to plunge in demand. The operating margin of the company has been mounted down by 3% in Q1 of fiscal 2012, down from the previously announced “break even” value.

However, the company has declared that its profit margin might be either equivalent or less than the Q1’s profit margin of the fiscal 2012. Multiple roadblocks such as macroeconomic environment, high expectation of consumers, new demands of the products and competitive mobile phone business enforced the company to poorly perform in the Q1 of this year.

According to the company’s financial updates, it sold 12 million Smartphones (equivalent to USD 2.23 billion in sales) in the Q1 first of this year. The company shipped 71 million non-Smartphone in Q1, which is equivalent to the USD 3 billion in sales.

The company is currently more relying on its Lumia lineups business to bring a vast numbers of the devices to the market across the world. In the last week, the company launched its Windows Phone 7.5 based Lumia 900 model on AT&T carrier in the US. The company is currently following a low-price strategy to attract a large numbers of folks toward the device, that’s why,  the company has kept just $99.99 for Lumia 900. However, I have previously illustrated why users should buy Nokia 900 Smartphone? Anyway, the company seems very aggressive towards the shipment of its Lumia models this time, which is quite rationale.

Via: Mobileburn 

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