Nokia Sales Slump Puts Pressure on Elop to Consider Split

Less than two months ago, Nokia Oyj Chief Executive Officer Stephen Elop stood up at the mobile-phone industry’s annual jamboree to declare that the company had turned the corner as sales of its new smartphone blossomed.

The prediction proved premature. Yesterday, the Finnish company reported a surprise operating loss at its handset unit for the first three months and forecast no improvement this quarter. While sales of the Lumia model it developed with Microsoft Corp. topped estimates, competition ate into margins and sales of lower-priced devices plunged in emerging markets.