Weak smartphone portfolio hurts Nokia

Mobile phone leader Nokia today lowered its outlook for Devices and Services in the second quarter of 2010, citing increased competition in the smartphone space and the recent drop in the value of the Euro.

Nokia expects the second quarter to be at "the lower end of, or slightly below, its previously expected range of EUR 6.7 billion to EUR 7.2 billion," with no growth in its market share volume.

"Nokia now expects its mobile device value market share to be slightly lower in 2010, compared to 2009. This update is primarily due to the competitive situation at the high-end of the market and shifts in product mix," Nokia's notice to investors said this morning.

Smartphone buying trends have been increasingly favoring high-end smartphones for the last few quarters, and Nokia's portfolio of products is very light on the high end.

This is the result of a decision by Nokia last year to cut smartphone production to reflect the reduced market demand for the company's devices. Shortly after announcing production cutbacks, Jo Harlow, Nokia's Chief of Smartphones said, ""We see ... really fierce competition certainly in the high end, but we also see it in the mid to low end of smartphones increasing."