Nokia Corporation (NYSE:NOK) (BIT: NOK1V) (AMS:NOKA)’s projected sales for the year 2013 have been slashed 41% off, by Nomura Holdings Inc. analysts. The main reason for the cut is Microsoft Corporation (NASDAQ:MSFT) announcement that the Finnish company’s Lumia phones won’t be supported by Microsoft’s upcoming Windows 8 Pro mobile operating system.
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Previous, the company’s sales had been projected to hit 10.9 billion euros in 2013, but now those prospects have been narrowed down to a mere 6 -$7.5 billion euros.; with volume sales for the new Lumia devices expected to be 34 million, Bloomberg reports.
The Windows Phone 8 Program is expected to roll-out in the second half of this year as announced earlier this week, and will not allow integration with phones running previous versions. Nokia Chief Executive Officer, Stephen Elop had placed great hopes on Nokia’s success reliant on Microsoft Windows Phone, after ditching its own Symbian operating system.
The Nomura analysts stated, “An abandoned strategy in feature phones combined with an apparent increase in competitive pressures, in Windows Phone, lead us to cut revenue estimates that the recent restructuring announcement does not fully offset.” This adds on to Nokia’s quandary, as the cell phone giant, a former market leader, now faces further problems.
The only silver lining is that Lumia owners will be able to upgrade their devices from the current windows 7 to windows 7.8 operating system. This will allow them to utilize some of the features of Windows phone 8, such as the home page, and download new apps from companies, like Zynga.
The steps taken by Microsoft are rumored to suggest that the company will soon be manufacturing its own mobile phones, something that seems to be certain, following its launch of Windows Surface tablets. This will mean dislodging itself from reliance on partnerships with other companies like Espoo, Finland-based Nokia, said the Nomura analysts.