Nokia shares plummet despite WP7 themed future
If you thought that Nokia's downward spiral would be halted following the Microsoft partnership announcement in February then think again - the Finnish company's share price has dropped significantly following its issuing of a profit warning to shareholders.
Shares dropped by 15 per cent after its second quarter 2011 outlook that stated that it "now expects Devices & Services net sales to be substantially below its previously expected range of 6.1 billion euros to 6.6 billion euros for the second quarter 2011 "due to lower than previously expected net sales".
The share price crash brings the world's biggest phone manufacturer's value down to the levels that it was way back in 1998.
Nokia has faced increasing pressure from Apple, RIM and the various Android device makers in the last couple of years and recently brought in Stephen Elop to steady the ship after some disappointing financial results. Elop hasn't been shy in making big calls and decided to drop Symbian (and possibly MeeGo too) instead pinning its hopes on a Windows Phone 7-flavoured future.
But Kathy Baker, director of product quality and device technology at T-Mobile USA told Pocket-lint that Nokia may have been better off treading a different path.
"People loved Symbian right?" she said. "When we launched the first Symbian 3G phone it sold off of the shelf - it was crazy.
"And now, from our perspective we've gone all Android. If Nokia offered us an Android phone, would we be there buying it? Absolutely. Our strategic direction is to stay with Android."
Baker went on to describe how Nokia would struggle to compete with a market now dominated by multimedia giants.
"How can you say that the biggest phone manufacturer is dead?" she asked. "But I don't think they're sleeping either. I do think that they have huge challenges in front of them about how they adapt to this new and changing market.
"They aren't a Samsung and they aren't an LG so from a users' perspective they are going to have to do some reinventing and really figure out how to address this market. But is a partnership with Microsoft going to help them do that or not?"
Stephen Elop, the man charged with changing the fortunes of the falling giant, will be giving a keynote at Qualcomm's Uplinq event in San Diego on Thursday. Pocket-lint will be there in person to see what the CEO has to say for himself, so be sure to check back for updates.