Nokia has heavy presence in Africa, mainly in countries including South Africa, Nigeria, Egypt, Kenya and a few in North Africa.
Among other issues the technology giant commented about included the company’s performance during the second quarter and full year 2010 outlook for Devices & Services.
In a statement to IT News Africa, Nokia said multiple factors were negatively impacting Nokia’s business to a greater extent than previously expected.
“These factors include: the competitive environment, particularly at the high-end of the market, and shifts in product mix towards somewhat lower gross margin products.
“In addition, the recent depreciation of the Euro affects Nokia’s cost of goods sold, operating expenses and global pricing tactics.
“Nokia now expects Devices & Services net sales to be at the lower end of, or slightly below, its previously expected range of EUR 6.7 billion to EUR 7.2 billion for the second quarter 2010,” reads the statement.
Nokia’s update was primarily due to lower than previously expected, especially average selling prices and mobile device volumes.
The statement further states that Devices and Services, non-IFRS operating margin to be at the lower end of, or slightly below, its previously expected range of 9% to 12% for the second quarter 2010. This update is primarily due to a lower than previously expected gross margin.
GOODMAN MAJOLA
