Commentary: Nokia's Costly Stumble

It had come to be a summer ritual for executives at telecom giant Nokia Corp. A few weeks at their Finnish country cottages, then back to Helsinki to announce record second-quarter earnings. But the July 27 earnings report carried a nasty surprise: Nokia Chairman Jorma Ollila announced that the release of two phones in the coming quarter would be delayed, depressing earnings by a couple of percentage points. The stock market responded with fury, knocking Nokia shares down by 25% and chopping $60 billion off the company's market cap of $255 billion. In the following days, shares failed to make up the ground.

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