Nokia (NYSE:NOK), facing weak demand and feeling the effects of a falling euro, may warn of weaker-than-expected second-quarter profits, according to analysts at the Macquarie Group.
The vendor--the world's top handset, and smartphone, maker--may make the announcement within the next week, according to analyst Phil Cusik and others at Macquarie. The analysts, in a research note, said Nokia is being dragged down by "stale" products, volatility with the euro and weaker demand in Europe.
"With no visibility on the N8, continued heavy competition in handsets and softening demand, we would remain on the sidelines even at these levels," the analysts said.
A Nokia spokesman declined to comment. Nokia is scheduled to report earnings July 22.
Nokia has been open about its need to regain momentum in high-end smartphones from Apple (NASDAQ:AAPL), Research In Motion (NASDAQ:RIMM) and other competitors like HTC. Nokia plans on releasing its first smartphone based on the Symbian^3 platform, the N8, in the third quarter. The company is also banking on its development of the MeeGo platform--the combined efforts of Nokia's Maemo and Intel's Moblin platforms--to deliver a high-end user experience.
- see this Bloomberg article
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