Yesterday, Nokia announced that its revenue and operating margins will be substantially lower than expected, as the world’s largest handset maker continues to struggle to gain traction in its turnaround. Nokia no longer provide performance targets for 2011. The market reacted and Nokia’s shares sank to 52-week low.
John Paczkowski of AllThingsD predicted a further downward spiral for Nokia, with analysts calling downgrades on its share. One analyst’s research note read:
The profit warning for the second quarter provided evidence that the next couple of years will prove very challenging, with the gross margin and market share trends of the last 4 quarters continuing, if not accelerating even more. The collaboration with Microsoft now appears to us unlikely to be successful, as Nokia’s brand is losing ground too fast and the window of opportunity for an alternative ecosystem is vanishing rapidly.
The spokeperson of the Finnish Federation of Professional and Managerial Staff also voiced his worries, the Wall Street Journal reported: “Frankly speaking, we are worried about Nokia’s future.. it all depends on Nokia’s partnership with Microsoft. If that doesn’t succeed then I don’t know.”
Meanwhile, over in Malaysia, Nokia is gearing up to set a new Guinness World Record for the Most People Playing in a Mobile Game Relay, or more aptly, Most People Playing in Angry Birds Game Relay. This official Guinness World Record attempt is scheduled on June 11 2011 in Kuala Lumpur.
With its burning platform, maybe Nokia is akin to Angry Birds. The game play involves a desperate quest to retake market share (eggs), stolen by a group of competitors – iOS, Android. With the right trajectory and velocity, Nokia may, just may, be able to crash through the increasingly ominous competitive barriers of its competitors and retrieve the eggs. Unfortunately for Nokia, the try again button is quick disappearing from the Level Failed page.