Nokia Shares Plummet on Poor Sales

by Christopher Freeburn | April 18, 2013 9:34 am

nokia storefront 630 300x200 Nokia Shares Plummet on Poor Sales[1]Shares of Nokia (NYSE:NOK[2]) tumbled more than 10% in Thursday morning trading after the struggling Finnish handset maker said its first-quarter sales dropped sharply[3] compared to last year.

Worldwide sales of Nokia’s smartphones plunged 32%. Mobile phone sales in China, a key market, plummeted 60%. Overall global mobile phone sales┬ásank 30%. The company’s Lumia line of smartphones, which run on Microsoft‘s (NASDAQ:MSFT[4]) Windows OS, offered a rare glimmer of good news, rising 27% during the quarter, the Associated Press noted.

Nokia posted a quarterly loss of $357 million, down substantially from the $1.2 billion loss it recorded during the same period last year. Revenue, however, sank 25% compared to a year ago.

Once the world’s dominant mobile phone maker, Nokia has stumbled in recent years as consumers migrate to smartphones like Apple‘s (NASDAQ:AAPL[5]) iPhone and phones running Google‘s (NASDAQ:GOOG[6]) Android operating system.

In January, Nokia suspended it quarterly dividend for the first time in two decades[7], but posted a fourth-quarter profit.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/04/nokia-storefront-630.jpg
  2. NOK: http://studio-5.financialcontent.com/investplace/quote?Symbol=NOK
  3. said its first-quarter sales dropped sharply: http://hosted.ap.org/dynamic/stories/E/EU_FINLAND_EARNS_NOKIA?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-04-18-07-42-36
  4. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
  5. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  6. GOOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GOOG
  7. suspended it quarterly dividend for the first time in two decades: http://investorplace.com/2013/01/nokia-ditches-dividend-for-first-time-in-20-years/

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