Nokia’s second quarter earnings plummet

Nokia has announced that its second-quarter earnings plummeted by 66%. The company blames the recession for the drop, saying demand for its products has diminished due to the economic turmoil. Their net profit was $535 million down from roughly €1.4 billion this time last year. Nokia shares fell 11% as a result of the news.

The company shipped 103 mobile devices this quarter, down 15% from a year ago and prices on their handsets fell to US $88 from US $104 last year. Their North American distribution fell 30%. Facing strong rivals in Apple and RIM, the company says it is trying to transform itself