1 Jun 2011

Nokia shares fall as sales forecast cut

1:59 pm on 1 June 2011

Shares in the mobile phone giant Nokia fell to their lowest level in 13 years, plunging by 17%, as the firm cut sales and profit margin forecasts.

The company shocked the market by saying sales at its most important unit, the one that makes mobile phones, will be substantially below forecasts set in April.

Nokia says lower selling prices and gross margins together with general market trends are behind the downgrade, the BBC reports.

It added that it could no longer provide a full-year forecast.