Nokia commits to a Windows Phone by year end as stock drops 15%

By Tom Warren, on 31st May 11 3:51 pm with 6 Comments

Nokia reiterated on Tuesday that it is fully committed to shipping a Windows Phone by the end of the year.

The finish phone manufacturer said it has “increased confidence” that the first Nokia Windows Phone will ship in the fourth quarter 2011. “Nokia remains pleased with its progress on its Windows Phone strategy,” read a statement by the company. Nokia also revealed that its second quarter outlook isn’t great. The phone maker downgraded its own outlook for Q2 2011. “Nokia now expects Devices and Services net sales to be substantially below its previously expected range of 6.1 billion to 6.6 billion euros ($8.6-9.5 billion dollars) for the second quarter 2011,” the company said.

The company was equally gloomy about its outlook for the rest of 2011. Nokia previously said it believed handset sales would remain at the same level in Q3 as Q2 and seasonally higher in Q4. “These targets are no longer valid,” said the company. “Nokia is taking immediate action to address the issues that are impacting its Devices & Services business. Nokia’s high-level strategic objectives and targets remain unchanged.”

Nokia CEO Stephen Elop explained the downgrade in the company’s expectations. “Strategy transitions are difficult. We recognize the need to deliver great mobile products, and therefore we must accelerate the pace of our transition,” he said. “Our teams are aligned, and we have increased confidence that we will ship our first Nokia product with Windows Phone in the fourth quarter 2011.”

Nokia’s stock price dropped by 15% in morning trading on the NYSE as investors and analysts reacted to the profit warning news.

  • http://twitter.com/efjay01 Ef Jay

    Just get cracking on those Mango handsets with top design, typical Nokia camera and tons of storage. Leave those android fanboys htc and Samsung in the dust!

    • Guest

      Part of the issue presumably is that MS needs to finish Mango before Nokia can finalize design and test.

  • http://twitter.com/jimmyfal Jimmy Fallon

    Go get em Steph!

  • Hernan Lozano

    Finnish.

  • Mark

    They were going to have to take down guidance whether they transitioned to WP7 or not. Blaming it on the transition is a bit disingenuous.  

  • Mark

    They were going to have to take down guidance whether they transitioned to WP7 or not. Blaming it on the transition is a bit disingenuous.