Nokia shares drop to lowest since 1998 £450
31st May 2011 | 21:08
Lower than expected profit forecast sends share price into tailspin
Nokia's share price dropped a whopping 15 per cent on Tuesday and, as a result, is now at its lowest since 1998.
The shock tailspin came after the company was forced to realign its profit forecasts for the forthcoming quarter, admitting it may only break even between April and June 2011.
The crisis-hit Finns admitted that profits will be "substantially lower" than the 6 - 9 percent margin it had initally expected, due to faltering handset sales across the globe.
On top of that, Nokia has also decided it is no longer a good idea to make forecasts for the rest of the year, as fears grow that the company could even post a loss for the first time in over a decade.
Worse to come
Caroline Milanesi, of the Gartner research firm, told the Guardian that the company is probably yet to hit its lowest ebb.
"It's going to get worse before it gets better," she said. "The second quarter should be the worst – if it isn't then they have worse problems than we thought they did.
"In the third and fourth quarter this year there will be new products. If they can't get traction with those then it will be a big issue."
Nokia is now pinning is hopes of a revival on the WIndows Phone operating system and is set to start pumping out Microsoft-infused handsets at the end of 2011 or the beginning of 2012.
Will it be too little too late?