Nokia Corp. warned Wednesday that its earnings this year will be hit by tough competition from rivals in the smart phone market, causing its stock to plunge 10 percent.
The world's largest mobile phone maker said "the competitive environment, particularly at the high-end of the market" would force net sales in the current period to be "at the lower end of, or slightly below, its previously expected range of euro6.7 billion to euro7.2 billion ($8.2 billion to 8.8 billion)."
Nokia also said its operating margin in the period would be at the low end or below its previous prediction of 9 to 12 percent.
The company's share price plummeted 9.8 percent to euro7.14 ($8.75) in afternoon trading in Helsinki.
Nokia stock has continued a downward trend since it fell 14 percent on the April 21 release of its first-quarter earnings report, as the company is seen as losing out against competition.
While it is still a global leader in smart phones, it's struggling to compete in the expensive segment with rivals such as iPhone-maker Apple Inc. and Research in Motion Ltd., which makes BlackBerry handsets.
Last month, CEO Olli-Pekka Kallasvuo conceded that the Finland-based firm lacks a high-end smart phone, adding that it has "plenty of work to do" to keep up with the competition.
On Wednesday, Nokia said that it had not changed its expectations of flat volume growth for the full year while overall market growth was expected to be 10 percent on 2009.
But it added that it now expects the value of its own handset market share to be "slightly lower in 2010, compared to 2009," when earlier it had predicted slight growth.
Nokia is due to publish its second-quarter earning report on July 22.
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