Shares in Nokia plummeted by 14 per cent on Wednesday (April 12th) after the company warned that it expects to lose money for the first six months of the year.
It blamed strong competition for mobile phone sales in areas such as India, the Middle East, Africa and China, among other reasons.
The once dominant Finnish manufacturer said in a statement that its mobile revenue will stand at around €4.2 billion ($5.3 billion), which will represent a year on year fall.
This translates into a loss of €126 million and would be the sixth quarter in a row in which the firm's mobile operating profit has declined.
Nokia had hoped the launch of its latest flagship device the Lumia 900 would help arrest this slide, however, many of the handsets had to be called back after the developers noticed a software bug in it.
The full first quarter results will be published on April 19th.
Posted by Peter Robinson