Nokia Officially Vows to Release First Windows Phone 7 Smartphone in Q4 2011

Nokia Speeds Up Launch of First Windows Smartphone as Sales of Handsets Collapse

by Anton Shilov
05/31/2011 | 02:40 PM

Nokia Corp. on Tuesday said that it would release its first handset based on the Microsoft Corp.’s Windows Phone operating system in the fourth quarter of this year. The company accelerates development of smartphones on the new OS as sales of currently available devices that use Symbian platform collapsed in the second quarter of 2011.

 

“Nokia remains pleased with its progress on its Windows Phone strategy, and has increased confidence that the first Nokia product with Windows Phone will ship in the fourth quarter 2011,” a statement by Nokia reads.

Although many times various executives of Nokia said that the company would be happy to release its first smartphones based on Windows Phone platform already this year, a number of market observers noted that the world’s largest manufacturer of handsets would only be in position to commercially launch phones featuring the new operating system only in 2012. Given the fact that in the recent years the company has got a track record of delaying products from originally set deadlines, the official commitment may not mean that the new phone will become available in Q4 2011.

The acceleration of Windows Phone 7-based smartphone introduction coincided with the announcement of major sales drop in Q2 2011.

Nokia now expects Devices & Services net sales to be substantially below its previously expected range of €6.1 billion to €6.6 billion for the second quarter 2011. The company explained that the competitive dynamics and market trends across multiple price categories, particularly in China and Europe, negatively impacted its financial results and sales. The company also indicated that its product mix shifted towards devices with lower average selling prices and lower gross margins.

Given the unexpected change in the outlook for the second quarter, Nokia believes it is no longer appropriate to provide annual targets for 2011. However, Nokia expects to continue to provide short-term quarterly forecasts in its interim reports as well as annual targets when circumstances allow it to do so.