Nokia cut its first-quarter sales outlook. Analyst Peter Dionisio says the mobile-phone maker cited two main reasons for the shortfall: market-share loss, and a product mix skewed towards the low end. He says on market share, Nokia's weak product portfolio, particularly in the 150 euros to 250 euros average selling price model range, was the main reason for the loss in share.
Dionisio cut the 94 euro cents earnings per share estimate for 2004 to 81 euro cents, and cut the 1.05 euro estimate for 2005 to 89 euro cents. He reiterated the buy rating on the belief that concerns relating to Nokia's market share and product portfolio are already reflected in its revised estimates, as well as the lower stock price.