Earlier in the day, Nokia said its Q2 comparable operating profit declined to 423 million euros ($462 million), down by nearly a third from the 619 million euros posted in the same period of last year.

Nokia weak net sales

Citing “ongoing market weakness,” the company said net sales also eased by 18% to 4.47 billion euros – the lowest level achieved since the Q4 of 2015, according to LSEG data.

“The most significant impact was the challenging year-ago comparison period which saw the peak of India’s rapid 5G deployment with India accounting for three quarters of the decline,” Nokia CEO Pekka Lundmark said in the earnings release.

The landscape likewise remains “challenging as operators continue to be cautious” in the mobile networks sector, he warned.

Nokia financial outlook

As per Nokia, the financial outlook for it shows a “stabilizing” industry environment and a “significant acceleration in net sales growth in the second half” of the year, based on the order intake experienced in recent quarter.

“While the dynamic is improving, the net sales recovery is happening somewhat later than we previously expected, impacting our business group net sales assumptions for 2024,” Lundmark said. “Despite this, we remain solidly on track to achieve our full year outlook supported by our quick action on cost.”

The firm continues to target a performance toward or just under the mid-point of its comparable operating profit guidance of 2.3 billion to 2.9 billion euros for the full year.

Major upset for Nokia

Nokia suffered a huge blow from the loss of a major North American contract late last year, when U.S. telecoms juggernaut AT&T selected Ericsson as a supplier to build a telecom network that uses only so-called ORAN technology.

Nokia’s cost cutting measures

The Finnish firm and Swedish rival Ericsson have embarked on steep cost-cutting programs amid an industry-wide battle against a slowing economy and infrastructure spending trims from mobile operators. Back in October, Nokia announced it would eliminate up to 14,000 jobs following a plunge in third-quarter earnings, with an eye to lower its gross costs by between 800 million and 1.2 billion euros by 2026.

The firm on Thursday said it had made “significant progress” on its cost savings program and actioned measures aimed to reduce costs by 400 million euros to date.

Nokia stock update

Nokia’s Helsinki-listed shares tumbled down by 8% at 9 a.m. London time, shortly after the market open.

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In a bid to up Nokia’s sales again, the Finnish company has decided to team up with the new version of Windows, Windows 8 and has planned to launch a smartphone. This news comes as no surprise to the various sources spread across the country. Since Nokia sales have been hitting an all-time low for some time now and seeing that their competition are getting famous and ahead of them. This might have in a way triggered off the want to push up the business again. Following this, a trade fair has been planned in the month of September by big shots of Nokia. Though nothing has been spelt out clearly, apart from several reports from different business magazines, it is rather obvious that the Chief Executive of Nokia, Mr. Stephen Elop plans to launch the new smartphone into the market. The Move and the Competition Experts have already started analysing this new moveby top professionals of Nokia and have indeed put some theories forward. For one, the time of launch of the phone comes right before Nokia’s biggest  competitor Apples gets a chance to launch their new version of the iPhone, iPhone5. This US competitor of Nokia has already been very successful in giving a run for Nokia’s money and business and by the looks of it, Nokia has planned the trade fair, right before an important Apple event, which is tentatively dated a week after the Nokia event. Industrial professionals have already dished out reports stating it point blank that Nokia has no way of gaining its position back unless a good amount of business strategies are launched and implemented. Currently, Samsung and Apple are the Finnish company’s biggest threats. A Rise in the Market Value Indeed right after Stephen Elop declared the launch of the new phone, the market value of Nokia has risen considerably and there is indeed an increase in the value of shares of Nokia. Since Nokia had almost hit a bottom with its value of shares and of course the large business, this piece of news comes as good news for both the stockholders and of course the sundry holders. The Change from Symbian to Microsoft However, Microsoft phones are yet to be received well in the market, Stephen Elop has decided to go ahead with the software as the operating system of the new smartphone to be launched by Nokia. It so happens that the shift to Microsoft came after a  move in 2011, in which Stephen Elop had decided to make the change over the Symbian software, which is an outcome of the native of Nokia. As far as the review of the business of Nokia goes, things had better improve after the launch because the prospects have been looking rather bleak. For starters, though Nokia is still the second largest cell phone manufacturer in the world, the company has reported lost an amount of more or less 1.53 billion euros, just in the second quarter. Moreover, Nokia’s sales records cannot exactly be termed as better off with the figure being about 4 million phones sold.

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