Good and bad news for Nokia
The question is why?
It seems that investors feared that the figures released by Nokia would be worse than they were.
Analyst Francisco Jeronimo said: “Despite the gloomy outlook and these results, we believe Nokia continues on the right track.”
He added: “The company took a long-term strategy, compromising short-term results. The clock is ticking, however, and if sales don’t wake up, Nokia and Stephen Elop will have to come up with a magical plan.”
Nokia has been struggling for a fair few years now. Even the hyped partnership with Microsoft to manufacture Windows Phone devices has not sparked the imagination of its once loyal customers.
The company has failed to keep up with the growth of Apple and, even more so, Google’s Android sales. While many in the industry urged Nokia to do a deal with Android, it plumped for Microsoft instead. This resulted in sales dropping massively by a little over a third to €1.54bn between April and June.
Despite these gloomy sales figures, shares rallied and jumped by more than 17% to €1.60. Shares had been dropping, so this is obviously a welcome recovery. Whether this can be maintained, it is too early to say.