Japanese financial company Nomura Holdings has lowered the revenue estimates for Nokia handsets from €10.9 billion to €6 billion for 2013, after Microsoft announced that Windows Phone 8 will not be compatible with older Lumia models.
In April, Nokia had to downgrade its profit outlook for 2012 from “breaking even” to three percent in the red. This week, the troubled Finnish manufacturer announced restructuring measures that will lead to closure of the factories in Finland, Germany and Canada, and the loss of 10,000 jobs.
The company is also selling its Vertu luxury division to the private equity firm EQT VI.
Nomura Holdings has predicted that next year, Nokia will sell 34 million devices running Windows Phone, 41 percent less than previously thought, reports Bloomberg.
Microsoft said this week that the new Windows Phone OS will be released before the end of the year, but the current Windows Phone 7 devices will not be able to upgrade. Instead, they will be offered an updated version of the existing software, featuring a new home screen.
Last year, Nokia made a choice to abandon its Symbian OS to focus on partnership with Microsoft. However, the transition didn’t go smoothly. There were problems with marketing, and some shareholders even decided to take the company to court, claiming it “misled” the investors by converting to a Windows platform.
“We had hoped that Q3 would represent the low point in Nokia’s competitive cycle,” the analysts wrote. “An abandoned strategy in feature phones combined with an apparent increase in competitive pressures in Windows Phone lead us to cut revenue estimates that the recent restructuring announcement does not fully offset.”
And yet, at the Windows Phone Summit on Wednesday, many developers were optimistic about the new OS, and expressed confidence in Nokia’s ability to grow sales of Windows Phone devices.
How much do you know about the iPhone’s rivals? Take our quiz!
Thoma Bravo agrees to acquire Darktrace for $5.32 billion in cash, delivering some welcome news…
Customer adoption of AI services embedded in cloud services continues to deliver results for Microsoft,…
TikTok's 'secret source' algorithm is so core to ByteDance, it would rather shut down US…
After relocating from California to Texas in 2020, Oracle's Larry Ellison now reveals plan to…
Share price hit after Meta admits heavy AI spending plans, after posting strong first quarter…
For third time Google delays phase-out of third-party Chrome cookies after pushback from industry and…
View Comments
It's not so much policy as it is not possible due to the changes. But you already knew that if you did even a small percentage of your homework, troll.
The developers will now have to develop for a new platform - they wont bother with the old. Remember Microsoft's Kin Phone anyone?