It’s all going wrong for Nokia - big losses in Q1 (2012)

Nokia has just announced some very poor financial results for the first three months of 2012, raising concerns that Stephen Elop’s turnaround strategy for the once market-leading mobile phone producer may be running into further trouble.

Nokia lost $1.2bn in Jan-March 2012 - significantly higher than market expectations. Sales were much lower than expected and Elop has decided to fire his most senior sales director as a result.

Nokia’s smartphones have been selling poorly compared to the iPhone and Android devices and now Nokia is starting to lose the market share for its cheaper phones as well.

In response to the results, Elop has said that he will be trying to implement his new strategy more quickly and has promised to announce extensive further cost-cutting measures soon. That will be on top of the 30,000 job losses already announced - a simply huge retrenchment strategy.

The news clips and interviews below provide students with some more information about Nokia’s performance and the scale of the strategic challenge facing Stephen Elop.