Nokia Oyj warned operating profit margins at its key phone unit would slip through the rest of the year, taking the shine off higher-than-expected first-quarter earnings on Thursday.
The company signed a final agreement to start using Microsoft Corp software, enabling it to slash annual costs by 1 billion euros ($1.5 billion). Yet it faces an awkward transition in which profitability is getting squeezed.
Nokia's key phone unit reported an operating profit margin of 9.8 percent for January-March, well ahead of analysts forecast of 8.6 percent, but the group said for the full year the margin would fall to within a 6 to 9 percent range.
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Nokia sees weaker times after strong first quarter
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