Nokia has cut its full-year mobile handset sales forecast, and its estimates for global handset sales. The unexpected news caused its share price to plunge. Wall Street expected Nokia to downgrade its network sales target, but the lower handset sales forecasts came as a surprise.
The company’s Q1 net sales were E7.01 billion, a drop of 12% from the same period last year. However, its operating margin rose from 18% to 18.3%. Nokia still expects sales growth will be 15% or higher for the second half of the year, but this will mean full year growth of just 4-9%
Q1 handset sales declined by 7% to E5.44 billion, while Nokia Networks saw sales fall 29%, higher than the 25% fall expected by the company. The company expects 2002 to be another difficult year, with GSM sales and the infrastructure market forecasted to decline.