Nokia suffering under intense competition

Finnish handset manufacturer Nokia is hurting, with pressure from other competitors high as the firm struggles to compete in the high-end smartphone sector.

Last week the company downgraded its sales guidance, but comments included in its finance report suggest the company is struggling to compete with the likes of Apple and Research in Motion.

Nokia said during the second quarter of 2010, “multiple factors are negatively impacting Nokia’s business to a greater extent than previously expected”.

“These factors include: the competitive environment, particularly at the high-end of the market, and shifts in product mix towards somewhat lower gross margin products. In addition, the recent depreciation of the Euro affects Nokia’s cost of goods sold, operating expenses and global pricing tactics.”

The company expects Devices & Services net sales to be at the lower end of its expected range of EUR6.7-7.2 billion.