Nokia shares plummet following warning to investors

Mobile company Nokia has seen a 15.98 per cent slump in its shares today following its warning to investors that it expects a weaker than anticipated second quarter.

The company wrote in a statement that "multiple factors are negatively impacting Nokia's Devices and Services business and to a greater extent than previously expected".

It also said that its net sales would be "substantially below" its previously expected range of between €6.1bn (£5.3bn) and €6.6bn (£5.7bn) for the second quarter of 2011.

Nokia expects that its operating margin "will be around break even" for this quarter.

It points to lower than previously expected average selling prices and mobile device volumes as the main reason for the downward revision.

Nokia's performance has come under intense scrutiny since its CEO Stephen Elop compared the company's position to that of a man "standing on a burning platform" in a leaked memo in February.

This was shortly followed by a controversial deal with Microsoft that will see Nokia develop Windows smartphones as its primary platform.

"Strategy transitions are difficult. We recognise the need to deliver great mobile products, and therefore we must accelerate the pace of our transition," said Stephen Elop, president and CEO of Nokia.

"Our teams are aligned, and we have increased confidence that we will ship our first Nokia product with Windows Phone in the fourth quarter 2011."

Nokia also confirmed last week that it will continue support for its own operating system, Symbian, until 2016.