April 18 - A sharp fall in sales of Nokia's basic phones overshadowed a stronger performance from its Lumia smartphones in the first quarter, rekindling fears over its future and sending its shares tumbling to year lows. Sonia Legg reports.
20% is today's daily digit - the fall in overall net sales at Nokia. An increase in sales of Lumia smartphones - up to 5.6 million units from 4.4m - was overshadowed by a big fall in basic phones. Sales at the equipment venture Nokia Siemens Networks also fell unexpectedly. As a result the Finnish mobile phone maker expects operating margins to fall by 2% in the second quarter - compared to plus 0.1% in the first. Nokia has fallen well behind Samsung and Apple in the smartphone race. The results sent shares tumbling - down almost 13 percent at one point BGC's Mike Ingram says there are some who won't be surprised by the results. (SOUNDBITE) (English): MIKE INGRAM, BGC PARTNERS, SAYING: "Some of my colleagues here think Nokia is dead in the water although I am always a little bit shy of commenting on individual stocks. Of course buying into anything at the moment when sentiment is so bad is to some extent leaning into the wind very heavily." CEO Stephen Elop asked for two years to turn Nokia around when he was appointed in 2010. That's now up, raising questions about how much longer he will get to show the company is on the right track.