Increased competition means Finnish handset giant will lose market share.
Nokia says it will lose market share in the third quarter of this year due to increased pressure from its rivals, most notably the likes of Samsung and LG from South Korea.The company - which held 40 per cent of global handsey sales in the first half of this year - will still meet its sales targets for the full year, but the news saw its share price slump by 10 per cent in Friday's trading.
Nokia shares have fallen a further 1.9 per cent this morning.
Speaking to analysts on Friday about the expected market share drop, Nokia CFO Rick Simonson stressed "we are not talking about several points here".
However, he added that "Less units equals lower revenues equals lower operating profit".
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Nokia says it doesn't want to enter the "unsustainable" price war for the low-end market currently being waged LG and Samsung.
It's tough times for 'established' handset makers right now, with Motorola's ongoing problems and Sony Ericsson taking a surprise turn for the worse last qaurter.
