Nokia has issued a profit warning for the second quarter, blaming increasing competition and the weaker euro.
The company now expects quarterly sales at its Devices and Services division to come in at the low end or slightly below its previous forecast range of €6.7 to €7.2bn , due to lower average selling prices and mobile device volumes.
The manufacturer said: ‘During the second quarter of 2010, multiple factors are negatively impacting Nokia's business to a greater extent than previously expected. These factors include: the competitive environment, particularly at the high-end of the market, and shifts in product mix towards somewhat lower gross margin products.
‘In addition, the recent depreciation of the euro affects Nokia's cost of goods sold, operating expenses and global pricing tactics.’
The division's adjusted operating margin is also expected at the low end or slightly below the earlier outlook of 9 to 12% for the quarter.
Nokia said it no longer expects to improve its revenue market share this year and instead expects a slightly lower market share compared with 2009. However, the group still expects to maintain its volume device market share for 2010, which it said will be ‘flat’ compared with 2009.
The manufacturer said it will report its second quarter results and more details on its 2010 full year outlook on 22 July 2010.