Nokia warned today that sales at its main handset unit could be weaker than expected in the second quarter due to the weak dollar and economy, and impact of the SARS outbreak.
The world's largest mobile phone maker said it saw sales growth at its main mobile phones unit at the low end of or below an earlier forecast of 4 to 12 per cent, but still positive.
Strong profitabilty at the unit would continue, with its market share up on the January-to-March period.
Nokia's update comes one day after the world's number-two mobile phone maker, Motorola of the United States, warned it would miss second-quarter and 2003 sales and profit targets after ailing Asian markets were hit by the effects of the Severe Acute Respiratory Syndrome outbreak.
Nokia's shares initially slipped on the statement but then moved into positive territory, climbing 1.5 per cent to €15.43, with analysts saying the comments met their expectations.
Nokia did not comment on the outlook beyond the quarter, but will provide a mid-year strategy update tomorrow.