Nokiashares tumbled after the company lowered their estimates for the second quarter and full year outlook, citing weaker performance at its Devices and Services unit.
Shares were down about 9 percent in early morning trading.
Nokia said in a press release increasing competition in the market and the decline of the euro, which affects the company's operating expenses in the world market, are among the reasons the company has revised its outlook for the second quarter.
The cell phone company, which originally estimated Devices and Services net sales for the second quarter to range from EUR 6.7 billion to EUR 7.2 billion, said net sales will now either fall to the lower end or below the low estimate. The revision was primarily caused by greater than expected price cuts for mobile devices.
Nokia also said they expect their market share to drop lower in 2010, than in 2009, citing an intensifying competitive environment in the higher-end of the market for the decline.
Nokia's revision comes in the wake of the launch of Apple's iPhone 4, which went on pre-sale Tuesday. Apple, among other smartphone developers, has continued to eat up higher-end market share for mobile devices in recent years, creating mounting pressure on Nokia to steal back some of that share.