Nokia expects first-half losses

Mobile phone firm Nokia says it expects to make a loss during the first half of 2012, due to poor sales India, the Middle East and Africa and China and a decline in gross margins.

The firm had previously expected to be in profit during the first quarter. As a result shares in the Finnish firm were down more than 13 per cent.

It estimates that net sales of devices in the first quarter 2012 were €4.2bn, including mobile phone net sales of €2.3bn (71m units) and smart devices net sales of €1.7bn (12m units), and Devices & Services Other net sales of EUR 0.2 billion

“Nokia is quickly taking action. Nokia will continue to increase its focus on accelerating Lumia sales, as well as on lowering the company’s cost structure, improving cash flow and maintaining a strong financial position,” the firm said in a statement.

Nokia’s flagship Lumia range of phones has been hit by reports of software glitches in the latest model.