Nokia shares drop 14% following scary profit warning
Nokia have been getting their asses handed to them in a tall hat for some time now. Basically, since everyone decided that they wanted a smartphone, the Finnish company have been losing ground.
Nokia has predicted a €126m first half loss, blaming software problems and the strong competition from smartphoneland. And shares have plummeted by 14% this week as a result. This will be the sixth quarter in a row in which Nokia have lost money.
This hasn't been helped by the slow sales of Nokia's Lumia smartphones, which in fairness to everyone who didn't buy one, weren't very good and pricier than your average smartphone. It feels strange to see a company so willfully out of touch with the market, considering just how hugely dominant they once were.
That said, if you needed to break an intruder's skull, you'd want the Nokia 3310 in your corner, rather than a wimpish smartphone.
However, everyone wants a phone that isn't what Nokia are currently offering and this profit warning comes on the back of the company admitting that their latest Lumia handset has a software bug which means it drops data connections to the AT&T network, which it just happens to be exclusively sold on. Nokia are offering a $100 credit to anyone who has bought one of the phones, which is all well and good, but it isn't exactly going to stop people from switching from iPhones and Android phones, is it?