Nokia shares had dropped 11.3 percent to 13.93 euros by 1219 GMT, their lowest since November 2005, dragging the DJ Stoxx Tech index over 5 percent lower.
"Nokia expects the overall mobile device market in 2008 to be impacted by the weaker consumer confidence in multiple markets," Nokia said in a statement.
It said other reasons for the fall included a reluctance to meet aggressive pricing from rivals, and a slow ramp-up of mid-range phones.
Nokia said it expected to lose market share in the third quarter, having previously forecast its market share would remain at 40 percent, as it was in the second quarter of the year.
"Nokia has not broadly participated in the recent aggressive pricing activity, as it believes that the negative impact to profitability would outweigh any short-term incremental benefits to device unit sales," Nokia said.
Nokia said it still targeted an increase in its device market share in 2008, and still expected industry mobile device volumes to grow 10 percent or more from the approximately 1.14 billion units it estimated for 2007.
(Reporting by Brett Young, editing by Will Waterman)
© Reuters 2008. Tous droits résérvés.
