The newly announced partnership between Nokia and Microsoft brings a lot of changes to the Finnish company and its financial reporting and future. That is one reason why “Nokia expects 2011 and 2012 to be transition years, as the company invests to build the planned winning ecosystem with Microsoft.”
The company announced that its 2011 yearly prospects are uncertain and doesn't provide any details for its annual targets. Nokia, however, will keep providing quarterly forecasts to mark its progress in adopting Windows Phone.
When the transition is over Nokia aims to achieve better long-term results. Espoo expects:
- Devices & Services net sales to grow faster than the market.
- Devices & Services non-IFRS* operating margin to be 10% or more.
Nokia predicts more competition in the cell phone industry with the adoption of smartphones, but just how is this going to work out for them? Let us know what you think!