Mobile phone manufacturer, Nokia expects sales and profit margins for the current quarter to be well below its forecasts. It is evident that the lower selling prices and gross margins together with the general market trends are a reason for this downgrade.
As a strategy to focus on smartphone, Nokia will cut 7,000 jobs worldwide. The company?s latest announcement that its sales will be below 6.1 billion euros has resulted in the group?s shares to fall by almost 12 percent in Frankfurt.
“Strategy transitions are difficult,” said Nokia chief executive Stephen Elop.
It is said that the firm is looking to make up the ground it had lost to competitors such as Apple?s iPhone and phones using Google?s Android operating system.