Nokia rings the alarm bells

13 April 2012

MORE than e6bn (£4.2bn) was wiped off the value of Nokia today after the mobile phones maker warned that sales would be flat or slightly down in the current quarter.

The shares were marked down e1.28 to e14.47 in Helsinki after the warning, which also sparked big slides in the shares of mobile makers Ericsson, Alcatel and Siemens.

Attributing its problems to the slide in the US dollar, Nokia said sales growth slowed to 1% in the June quarter while net profit slipped 27% to e664m.

However, chairman Jorma Ollila described the Finnish group's growth in market share to 39% as 'very reassuring'. Shipment of its first third-generation phone, the 6650, has begun.

Nokia's market value has been reduced to e69bn from e290bn at the top of the hi-tech bubble in 2000 when Nokia was briefly the biggest company in Europe.

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