Nokia share price falls on downgrade

Shares in mobile phone maker Nokia have slumped a further three per cent this morning, traders warned, after falling 14 per cent on Friday.

The fall has come after broker JP Morgan Cazenove published a research note downgrading its 2011 earnings per share by a third to 37 euro cents (31 pence).

Analysts also warned that due to a weak product pipeline the worst case scenario could be a further 16 per cent downside to the earnings, to about 29 euro cents.

JPMC focused on the lack of clarity around Nokia’s deal with Microsoft, announced last week, which would see Nokia using the software giant’s operating system on its smartphones.

The deal announcement failed to reassure investors and followed the leak of an email from Nokia’s chief executive Stephen Elop that likened the company’s predicament to standing on “a burning platform”.