Analysis says Nokia does not have bad market expectations

Lead: The company's share price has fallen 20% since Nokia cut its second-quarter revenue target, foreign media said today.　　But that is good news for investors looking at Nokia's long-term growth. The following is a summary of the article: Nokia shares have fallen 20% per cent since Tuesday (May 31), when the second quarter of fiscal year 2011 and last year's revenue targets were cut.　　On April 21, when the first-quarter results were released, Nokia expected the equipment and services sector to reach € 6.1 billion to 6.6 billion euros, operating margins of 6% to 9%, and operating margins of 3.66 euros to 594 million euros. But according to Nokia's latest forecast, the equipment and services sector will be far less profitable in the second quarter than previously expected, with only a break-even margin.　　Nokia also lowered its operating profit margins for the 2011 fiscal year. April 21, Nokia estimates that earnings per share in the second quarter will reach € 0.05, while the latest forecasts are slightly lost.　　For the entire 2011 fiscal year, investors had expected a diluted earnings per share of more than 0.4 euros, now only around 0.2 euros.　　The May 31 forecast is good news for investors looking at Nokia's long-term growth. The good news: Nokia said operating expenses for 2013 would be 1 billion euros lower than 2010, down 18%, which would greatly boost operating margins for 2013 years, most of which were due to Nokia's move from Symbian to Windows Phone system.　　The other good news is that Nokia's first Windows Phone smartphone will be listed in the fourth quarter of this year, earlier than the industry expected. The bad news: Nokia is losing market share and developing at a slower pace than its rivals. Now Nokia has become a very inefficient technology company, doomed to fail. In the smartphone market, Nokia can only rank third. CEO Elop (Stephen Elop) tried to save Nokia after taking office, but changing corporate culture is a difficult thing to do in a quarter or a year. Thankfully, Nokia has a lot of money and a heavyweight partner like Microsoft.　　Interestingly, Nokia's shares surged 8% after the news that Microsoft was interested in acquiring Nokia's mobile phone division. Thinking: It's exciting to think that CEOs of a big business can sacrifice a quarter and a year to pursue long-term growth. It is hoped that Nokia will be able to carry out its plan to seize the trend of smartphone development. Nokia 2013 can easily achieve a share of diluted income of 1 euros, and in the smart phone market to make great strides. But investors are still not in a hurry to buy Nokia shares, as there is room for price cuts before the rally, to around $6 trillion. (Li Ming)