Nokia has lowered its Devices & Services sales forecast for the second quarter of 2010, citing factors such as competitive environment, particularly at the high-end of the market, and shifts in product mix towards somewhat lower gross margin products impacting the business.
In addition, the Finnish mobile handset manufacturer said that the recent depreciation of the Euro will affect its cost of goods sold, operating expenses and global pricing tactics.
Nokia expects its Devices & Services net sales to be at the lower end of, or slightly below, its previously expected range of EUR6.7bn to EUR7.2bn for the second quarter 2010, primarily due to lower than previously expected average selling prices and mobile device volumes.
The company expects Devices & Services non-IFRS operating margin to be at the lower end of or slightly below its previously expected range of 9% to 12% for the second quarter, due to a lower than previously expected gross margin.
The company said that industry mobile device volumes will increase by approximately 10% in 2010, compared to 2009, and targets its mobile device volume market share to be flat in 2010.
For full year 2010, Nokia expects Devices & Services non-IFRS operating margin to be at the lower end of, or below, its previously targeted range of 11% to 13% for the full year 2010.
