The Grim RealityThe Q1 earnings announcement was a revelation of just how dire the situation is for Nokia. The company announced a loss of 1.34 billion euro which translates to a loss of $1.7 billion in U.S. currency. Compared to the same period of a year ago, it has suffered a decline in smartphone sales of 52%.
We're navigating through a significant company transition in an industry environment that continues to evolve and shift quickly. Over the last year we have made progress on our new strategy, but we have faced greater-than-expected competitive challenges. We are confident in our strategy and focused on responding urgently in the short term and creating value for our shareholders in the long term.Looking deeper into the numbers, the company logged what appear to be losses across the board. Net sales arrived at $9.65 billion, a number that is down from last year's performance. The company sold 12 million smartphones or 50% less than what it sold in Q1 of 2011. But as bad as these numbers were, the company warned that numbers for the coming quarter will arrive much worse than expected. The company said its devices and services operating margin was going to arrive in negative territory, also suggesting it has limited near-term visibility in that area. So the question is, what are investors to do in this situation beyond the obvious choice of avoiding the stock entirely?