Nokia fell dramatically this week following their stated expectations of not reaching their projected earnings. Nokia's stock fell 16% to close at $4.24, the lowest trading price since February 1998.
Nokia was able to sell 2 million Lumia smartphones but still suffered losses due to heavy global competition.
Stephen Elop, CEO of Nokia in a prepared statement announced that Nokia would be dropping it's phone operating system and would begin shipping phones with Microsoft's Windows Phone OS.
Adding significantly to Nokia's troubles were reports that Lumia 900 phones were shipped with a software error that made internet connection impossible. The company is offering a $100 credit to all customers.
Elop in an attempt to reassure investors went on to say that they were acting quickly to ramp up marketing, make cost cuts, adjust prices, and even restructuring.
Nokia is projecting further losses in the second quarter citing again the global competition, as well as bad product launch timing and the bad economy.
Nokia is in a position of having to react to a market that is clearly driven by Apple. How can Nokia get off of the ropes?
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