Nokia cuts smartphone forecast for Q2 and FY2010

By on Jun 16, 2010 at 11:35 AM
General June 16, 2010

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Last week, Macquarie Group analyst, Phil Cusik, warned that Nokia would have to cut it’s Q2 and FY2010 smartphone forecasts. Today, Mr. Cusik’s warning has become a reality. Bloomberg is reporting that Nokia cut its forecasts due to “a lack of high-end devices and a weaker euro.” Nokia’s stock reacted to the news by dropping 7% to 7.37€. 

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  • Louis

    Nokia’s dilemma: which market do they target? Cheap , low margin candy bar phones or the higher margin smart phones? Seems right now, their target is the low margin crap phones at sheer volume. If they’re smart and realize their current strategy is not a growth strategy, they’ll have to find a way to shift their focus. Soon. At this rate, it won’t be long until they start hemorrhaging pennies by the billions.

  • Dara

    Everyone who’s a fan of high end Nokia’s is waiting for S^3/4 and Meego phones.

    We’re perfectly happy waiting since we already have all the features that the newcomers are implementing now and Nokia’s are built to last.

    They’ll have a good 3rd quarter with the N8, and the 4th will be the launch of the Meego phone (N9?).

    • Rdx

      It sucks to be a minority

      • Dara

        Does it? I wouldn’t know, I use Symbian.

  • Rdx

    When will they switch to Android?

    • Dara

      When will Android run Qt?

      • Rdx

        What is Qt?

  • willy t ribbs

    Don’t feel sorry for them. Its their own damn fault for dropping CDMA/EVDO phone production in the U.S. and Canada. Since this the dominant technology here, HTC/Motorola/Samsung and Rim are continuing to expand in the smartphone market share within these two countries. When you bail a dominant technology which has the most users in that specific region, then those majority of people will forget who you are.

    Now all they have is dominance in make cheap ass low profit margin dumbphone for third world countries. Your fault Nokia for fucking around with Qualcomm.

    • http://cyberbulletin.wordpress.com/ Jouten

      I have to agree with willy. Nokia doesn’t take North America serious enough and it is costing them. Even Japan realizes the importance with keeping good business relations with North America. Their huge gaming consoles and computer/electronics sales are a testament to that.

      Nokia definitely need to step up like the Japanese have done if they want to continue to compete and grow.

  • shawn

    I knew nokia was in trouble when i bought the n900 last year. First there was the never ending push backs on release dates. Then when i got the phone with the highly anticipated maemo os i was not very impressed. Aslo the overall build of the phone was downright boring and of less quality compared to the e90, n95 and n97 i previously owned. And for some reason they put an almost useless stylus on it. Of which malfunctioned one day when i took it out. Called cust serve expexcting A+ service as before, not! Ended up returning it and very displeased overall. Yep, i felt something was wrong with Nokia at that point. Not sure whats up with them?

  • carniphage

    Apparently, Nokia is a Finnish word which is translated as “don’t worry, I assure you that this will be fixed next year”.

  • ThisGuy

    BGR only posts negative stories on Nokia because they are pissed off at not getting invited to the Nokia N8 preview.

    • ljp

      How is posting a press release from Nokia a negative sotry? Are they supposed to ignore a profit warning from the company? If they wanted to be negative they could mock Nokia for all their press interviews from the last year where Nokia executives said Apple and RIM would make no gains in their markets.

  • Tim

    I don’t really feel I am missing out on something because it wasn’t covered here.

    They(Nokia) are targeting a specific group of people an forgetting that the masses like phones that transition into their lives without any more due stress.

    Android-can do
    Iphone-does
    WM-the grandfather and staple
    BB-as well

    Them, are all smart phones, high end phones and lower end too, then we have..

    Nokia- Who knows what it will work with,support or sync with, and or have accessories even.. Its a blind pig n a poke system with them.

    Not worth the gamble for the average N/A consumer.

    Don’t care anymore till they make a serious effort, use a relevant OS, make more then 50 of them and for christs sake, stay in the game.

    Follow Motorola if they have to, for an example of a come back route.

    • Dara

      Yeah, you’re actually missing a lot.

      Like the fact that Nokia’s can sync with Windows, Mac, or Linux computers.

      Or that TV out is standard if you want to run a presentation, watch a movie, of check out pictures on a bigger screen.

      Or that they have non-nerfed bluetooth that works with just about any bluetooth keyboard, headset, mouse, and even WiiMotes and PS3 controllers.

      The big stumbling block for them is that they don’t have carrier support in America. Partly because they don’t make locked CDMA phones, but also because they’ve integrated VOIP calling for the past 6 years that literally destroys any carrier long distance model.

      Therefore the carriers don’t market them in 30 second TV commercials and so American consumers, bright lights that they have always proven to be, have no idea.

      • Chris

        The market wants what it wants. Companies that can’t (or refuse to) react to it, like Nokia, are relegated to the dustbin of history. Sing their praises all you want, it won’t remove them from the ditch they drove themselves into.

  • toursux

    Nobody gives a crap about Nokia in the USA.They are basically hasbeens and not important anymore!Maybe they should think about making an Android phone!!That is the only way they may actually be able to sell a smartphone!!

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