Nokia shares tumbled almost 18 per cent on Tuesday after the Finnish mobile phone maker issued a profit warning, heightening investor concern over the future of Europe’s biggest technology company.
Nokia said second-quarter sales and operating margins would be “substantially below” previous guidance because of lower-than-expected volumes and prices.
The warning increased the sense of crisis surrounding Nokia as it continues to lose market share to the Apple iPhone, devices using Google’s Android operating system and low-end Chinese manufacturers. Stephen Elop, Nokia chief executive, said 2011 was “going to be a difficult year to get through” as Nokia makes the painful transition to a new strategy based on using Microsoft’s Windows Phone software in its handsets.