Nokia's stock will be removed from the Euro Stoxx 50 index over concerns that the company's smartphones are losing market share. This move triggered a slide in Nokia's share price, falling to its lowest level in three months on the Helsinki exchange, according to Bloomberg.
The company's share price dropped 2.5 per cent to €2.65 earlier this week, the lowest price since Dec. 4, lowering Nokia's market value to €9.9 billion. The shares have now fallen 9.3 per cent this year.
How Euro Stoxx decided that Nokia smartphones are proving unattractive is not stated. However, Sanford C. Bernstein analyst Pierre Ferragu said in a note that a decline in Google searches for Lumia 920 from its peak in November could indicate that demand will plateau at today's "low" levels, and it's unlikely to see the increase in shipments that many expect.
"Over the year, Nokia will also likely face pricing pressure to shift inventory which will have a negative impact on profitability," said Ferragu, according to Bloomberg.
At the recent Mobile World Congress trade show Nokia unveiled two new mid-range Lumia smartphones, the Lumia 720 and 520, which run Microsoft's Windows Phone software. The two devices offer the operating platform's higher-end smartphone features but at a lower price. Nokia also said that following the launch of the Nokia Lumia 920T by China Mobile last year, the world's biggest mobile operator will bring TD-SCDMA variants of the Lumia 720 and the Lumia 520 to China.
For more:
- see this Bloomberg article
Related Articles:
Nokia to focus marketing more on products and features, less on Lumia brand
Nokia debuts feature-rich, lower priced Lumia 520 and 720 Windows Phones
Report: Nokia to compete in low-cost market with new models
Nokia gets a ratings boost amid optimism on its finances
Samsung launches Rex handset line for emerging markets, challenging Nokia
Nokia reports Q4 profit, but axes dividend and warns of hard times ahead