Nokia shares dive after sales forecast cut

Mobile phone maker Nokia’s shares have plunged 13 per cent after it cut its sales outlook for its devices and services division the second quarter of the year.

Nokia said lower-than-expected selling prices and volumes would push its operating margin down to breakeven level, “substantially below” its previous forecast of 6-9 per cent.

It had expected net sales of €6.1-6.6bn (£5.3-5.7bn) in the quarter but while it has scrapped this forecast it did not provide any further revised targets.

"Nokia now expects devices & services non-IFRS operating margin to be substantially below its previously expected range of six per cent to nine per cent for the second quarter 2011," it said in a statement.

"While visibility is very limited, Nokia's current view is that second quarter 2011 devices & services non-IFRS operating margin could be around breakeven."

"This update is primarily due to lower than previously expected average selling prices and mobile device volumes," it added.

Nokia, the world's largest phone maker by volume, said it was no longer appropriate to provide annual targets for 2011.