Smartphone competition is beginning to bite.
Nokia has revised its financial forecasts for Q2, in the face of increasingly tough competition in the high-end smartphone market.
"During the second quarter 2010, multiple factors are negatively impacting Nokia's business to a greater extent than previously expected," says the company's statement.
"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."
The company has also cited the recent depreciation of the Euro as a factor in its financial woes.
Nokia warns it may miss its previously forecast target of Devices & Services net sales of between 6.7bn and 7.2bn Euros in Q2.
Article continues belowAdvertisement
For 2010 as a whole, Nokia still expects its mobile device volume market share to remain flat, but now thinks its mobile device value market share will be slightly down on 2009.
Previously, the company was targeting a slight increase in its value market share this year.
The timing of the announcement is particularly unlucky for Nokia, coming as Apple announced that it had taken 600,000 pre-orders for its new iPhone 4 on Tuesday alone.
Nokia will be hoping that the release of its new N8 smartphone in Q3 will help the company restore its fortunes at the high end of the market.
