Nokia issues profit warning despite 'positive' Lumia sales

The Finnish company has said that its first quarter results for its Devices and Services Unit will fall short of expectations
Written by Larry Dignan, Contributor

Nokia said that its first quarter results for its mobile phone and smart device unit will fall short of expectations, largely due to weakness in emerging markets.

Nokia Lumia 300

Nokia has issued a profit warning for its Devices and Services Unit, despite a 'positive' start for its Lumia devices. Image credit: Ben Woods

The company said in a statement on Wednesday that the Lumia launch has had a "positive" start, but it wasn't enough to save the quarter. Nokia said that "competitive industry dynamics" in emerging markets such as India, China, Africa and the Middle East led to a shortfall. As a result, gross margins will be weak.

The company did say that it sold two million Lumia devices.

Chief executive Stephen Elop noted: "Our disappointing devices and services first quarter 2012 financial results and outlook for the second quarter 2012 illustrates that our business continues to be in the midst of transition. Within our Smart Devices business unit, we have established early momentum with Lumia, and we are increasing our investments in Lumia to achieve market success."

For more on this ZDNet UK-selected story, see Nokia issues Q1 profit warning, moves 2 million Lumia units on ZDNet.com.

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