Nokia Shares Decline on Analyst Report of Lower-Than-Expected Lumia Sales
Nokia Oyj (NOK1V), the world’s biggest maker of mobile phones, declined as much as 6 percent after analysts said the company’s first Windows Phones shipments were lower than expected.
Nokia may have shipped less than 1 million units for the quarter, with sales to customers of less than 500,000, James Faucette and other Pacific Crest Securities Inc. analysts wrote in a report dated yesterday. Doug Dawson, a spokesman for Espoo, Finland-based Nokia, declined to comment on the report.
Nokia announced the 420 euro ($568) Lumia 800 and 270 euro Lumia 710 last month for shipment this quarter and said it plans more models and higher volumes with U.S. and China rollouts early next year. Chief Executive Officer Stephen Elop shifted to Microsoft Corp. (MSFT)’s Windows Phone platform for the company’s main smartphone line after the company lost ground with its own 10- year-old Symbian software.
“The market has somewhat elevated expectations for Nokia and its Lumia launch, particularly given the strong backing from carriers that the company is garnering,” Faucette wrote. “If Nokia is unable to successfully regain high-end market share in the next several quarters, the stock could return to what we consider a fair value of roughly 4 euros.”
Nokia traded 5.5 percent lower at 4.34 euros as of 11:32 a.m. in Helsinki. That was the third-biggest slide on the Stoxx Europe 600 Price Index.
To contact the reporter on this story: Diana ben-Aaron in Helsinki at email@example.com