Nokia has downgraded its financial forecasts for the second time this year, admitting that Q2 sales could struggle to meet the lower end of its previous guidance.
The announcement on Wednesday sent its stock plummeting nearly 11%. It closed at 8.77, down 1.05, before recovering 3 cents in after-hours trading.
The vendor said net sales could be lower than the €6.7-€7.2 billion ($8.2b-$9.9b) it previously predicted, while non-IFRS operating margin could struggle to reach the 9%-12% forecast for the quarter.
The announcement highlights Nokia’s inability to create a smartphone that can compete with the iPhone, or a new operating system that can rival Android, BlackBerry or the iPhone.
The company said the “competitive environment, particularly at the high-end of the market, and shifts in product mix towards somewhat lower gross margin products” would impact on sales.
Additionally, the weaker Euro had increased operating expenses.
The currency fluctuations also hit Nokia’s global pricing strategy, putting greater pressure on ASPs that were already lower as the firm increased the number of mid-tier devices in its portfolio.