Nokia has just posted very disturbing quarterly results this morning. The European smartphone giant outlook appears to be getting worse and CEO Stephen Elop has acknowledged that things will not turn around overnight.

Elop is reporting that Nokia’s operating profit is down 44 percent since Q1 and sales of mobile devices are down 23 percent consecutively.  While the overall sales of mobile phones and smartphones are down, along with average selling prices.

Elop labelled the results as “clearly disappointing” and went on to say that competitive pressures are continuing. He tried to paint a somewhat more positive outlook for the rest of the year, thanks to Nokia’s clear strategy and several major product launches.

It is very clear that Elop is clearly putting Nokia’s future on Microsoft’s Windows Phone 7 to turn things around towards by the end of the year. Therefore, it would behove Nokia to get many dazzling WP7 phones out the fall.  Otherwise, it may be too late for the Finnish company.