Analysts lower forecasts for Nokia following poor Q1 sales

News Paul Briden 09:01, 11 Apr 2012

Investment analyst confidence in Nokia has dropped due to poor sales figures

Nokia has experienced ‘extremely poor' sales of its Symbian phones alongside wobbly Lumia Windows Phone sales, together this has created unsatisfying first quarter results for the company according to analysts.

BGR reports that Mike Walkley, an analyst at Canaccord GenuityWe has placed a ‘Hold' status on Nokia shares and lowered the price target to $5 per share.

Alongside reports that Sony experienced a record £4 billion loss for 2011, Nokia has posted a €954 million operating loss in the first quarter, equating to around £788 million.

‘We are lowering our estimates ahead of Nokia's Q1/12 earnings report as our checks indicate weak Symbian sales, seasonally soft feature phone sales, and a slow ramp in Windows smartphones,' said Walkley.

‘Our global checks indicated mixed Lumia sales with price declines helping sales trends in Europe,' he added.

Walkley believes Nokia can bring things back in the year ahead but suggested Windows Phone would have to break through this year if it was to succeed long term.

‘While we believe global wireless carriers intend to diversify product portfolios and support Windows smartphones, we view 2012 as a critical year for the Windows ecosystem to gain market share,' he said, ‘Given the investment necessary to grow the ecosystem, we view 2012 as a transitional year and anticipate a modest pro forma loss for Nokia.'

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