Nokia lowers 2010 earnings outlook

The company has decreased its second quarter and yearly outlook, saying sales of its devices will be lower than expected

Nokia cut its second quarter and 2010 outlook due to "multiple factors" including fierce competition and higher costs. Nokia said its device sales will be at the lower end of its range.

As noted before, Nokia is feeling the heat from Research in Motion and Apple in the smartphone market. Simply put, Nokia just doesn't have a smartphone response yet. It doesn't help that the decline of the euro versus the US dollar has increased its cost of goods sold.

The decline of the euro really hurts as Nokia is getting squeezed on pricing on the low end. Analysts have said that Nokia is being squeezed by Samsung and LG on mobile phones. Both of those rivals are aggressively pricing to gain share on Nokia.

For more on this story, see Nokia cuts outlook, cites competition, Euro, pricing on