Nokia (NOK) lowered its second-quarter guidance Wednesday, citing greater competition in the high-end smartphone market and a shift in its product mix toward lower-priced phones.
The smartphone maker now expects its second-quarter revenues and operating margins for its devices and services business to be at the low end, or slightly below, its previous forecast. Nokia's earlier guidance called for revenues of of $8.2 billion to $8.8 billion, with operating margins of 9% to 12%.
Nokia also lowered its expectations for its mobile device market share in 2010, saying it now anticipates it will be slightly lower than last year rather than posting an increase. The company's concerns about heightened competition in the high-end smartphone market come a day after Apple's (AAPL) iPhone 4 pre-order sales went through the roof.
The company also expects full-year operating margins for its devices and services to be at the lower end or below its previous guidance of 11% to 13%. Nokia plans to announce its second-quarter results on July 22.
Struggling in the Smartphone Wars, Nokia Lowers Guidance