Nokia cuts its outlook
Nokia has cut its guidance for its second quarter and the full year.
The company now expects revenue for its Devices & Services business to be at the lower end of, or slightly below, its previously expected range of €6.7bn to €7.2bn for the second quarter 2010. This is mainly due to lower average selling prices and fewer handset sales. This will also cut operating margins to the lower end of, or slightly below, its previously expected range of 9% to 12% for the second quarter 2010.
For the year, Nokia expects overall device volumes to be up approximately 10% on 2009, but its share of that market to be flat. It expects it share by value to be slightly lower than in 2009, due to competition at the high end of the market and a change in product mix.
Operating margins for the year will be at the low end, or below, the previously targeted range of 11% to 13%, although Nokia expects its fourth-quarter operating margin to outstrip that for the whole year, indicating a return to form.