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Nokia warns of six-month losses
Shares in Nokia plunged 17 per cent after the mobile phone giant surprised investors by saying it expected to make losses in the first half of 2012. The Finnish company said competition in the industry had led to lower sales particularly in India, the Middle East, Africa and China.
Nokia had previously expected to break even in the first quarter. It said it would continue to increase its focus on accelerating sales of its Lumia smartphones and cutting costs. The statement, issued in the middle of the day, surprised the markets and prompted an immediate sell-off of Nokia shares, pushing their value down to their lowest level since the late 1990s.
“It’s a disaster,” said Thomas Langer, an analyst at West LB. Last year, Nokia announced a strategic partnership with Microsoft that would see it move away from its Symbian operating system on its smartphones in favour of the Windows operating system. “Shipments of Symbian devices are declining faster than we anticipated,” Langer added.
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