Nokia stocks tumble by 10% on overhaul, dismal forecast

Nokia stocks are taking a beating with it falling over 10 percent in European markets at the time of filing this story. Nokia today announced it will be cutting down 10,000 more jobs by the end of 2013, overhauled its senior leadership along with some high-profile departures and painted a bleak outlook for the next two quarters.

While Nokia will be releasing its second quarter 2012 results on July 19, it has warned its smart devices unit has not performed as well as expected. “During the second quarter 2012, competitive industry dynamics are negatively affecting the Smart Devices business unit to a somewhat greater extent than previously expected,” the company disclosed in a statement today.

This indicates Nokia’s Windows Phone running Lumia devices have not done as well as the company would have expected. The competition among Android smartphone vendors has increased with cut-throat pricing and feature sets that Nokia’s Lumia smartphones currently lack.

It will be a steep uphill climb for Nokia, but seems the company is ready to face the challenge. Nokia also announced today its acquisition of Scalado, which will enhance the imaging capabilities of its Lumia smartphones, which was one of its major shortcomings. Add to it Nokia’s already impressive Maps solution, which it gained from its acquisition of Navteq in 2010.It also has an impressive music store, with millions of songs licensed from all major music labels globally.

Nokia is also expected to unveil devices running on Windows Phone 8 later this year, which is expected to make it more competitive with the iPhone and smartphones running on Google’s Android platform.

All is not lost for Nokia. Yet.

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