Nokia inks pact with Microsoft, sees weak quarters

[caption id=“attachment_1776” align=“alignleft” width=“380” caption=“Nokia chief executive Stephen Elop and Microsoft CEO Steve Ballmer at a Nokia event in London. Luke MacGregor / Reuters”]  [/caption]

HELSINKI - Nokia warned on Thursday operating profit margins at its key phone unit would slip in coming quarters after reporting better than expected January-March earnings.

January-March underlying earnings per share fell to 0.13 euro from 0.14 euro a year earlier, beating analysts’ average forecast for 0.10 euro.

Nokia’s market share fell to 29 percent from 33 percent a year earlier as nimbler Asian rivals ate into its dominant position in cheaper phones and it continued to lose out in more expensive smartphones to Apple and others.

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To turn around its smartphone fortunes, Nokia’s new Chief Executive Stephen Elop in February unveiled a deal to start using Microsoft software instead of its own Symbian platform.

Nokia said on Thursday the two firms had signed a definite deal.