Nokia lowers Devices & Services second quar...

NOKIA / Nokia lowers Devices & Services second quarter 2010 outlook and updates the full year 2010 outlook processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement. 

Nokia Corporation
Stock exchange release
June 16, 2010 at 15:00 (CET +1)

Espoo, Finland - Nokia today commented on factors impacting its business and
updated its second quarter and full year 2010 outlook for Devices & Services.
During the second quarter 2010, multiple factors are negatively impacting
Nokia's business to a greater extent than previously expected. These factors
include: the competitive environment, particularly at the high-end of the
market, and shifts in product mix towards somewhat lower gross margin products.
In addition, the recent depreciation of the Euro affects Nokia's cost of goods
sold, operating expenses and global pricing tactics.

Updated outlook for Devices & Services for the second quarter 2010:
- Nokia now expects Devices & Services net sales to be at the lower end of, or
slightly below, its previously expected range of EUR 6.7 billion to EUR 7.2
billion for the second quarter 2010. This update is primarily due to lower than
previously expected average selling prices and mobile device volumes.
- Nokia now expects Devices & Services non-IFRS operating margin to be at the
lower end of, or slightly below, its previously expected range of 9% to 12% for
the second quarter 2010. This update is primarily due to a lower than previously
expected gross margin.

Updated outlook for Devices & Services and mobile device market for the full
year 2010:
- Nokia continues to expect industry mobile device volumes to be up
approximately 10% in 2010, compared to 2009 (based on its revised definition of
the industry mobile device market applicable beginning in 2010).
- Nokia continues to target its mobile device volume market share to be flat in
2010, compared to 2009.
- Nokia now expects its mobile device value market share to be slightly lower in
2010, compared to 2009. This update is primarily due to the competitive
situation at the high-end of the market and shifts in product mix. This is an
update to our previous target to increase our mobile device value market share
slightly in 2010, compared to 2009.
- Nokia continues to target non-IFRS operating expenses in Devices & Services of
approximately EUR 5.7 billion in 2010.
- Nokia now expects Devices & Services non-IFRS operating margin to be at the
lower end of, or below, its previously targeted range of 11% to 13% for the full
year 2010. This update is primarily due to the currently estimated gross margin,
which is lower than previously estimated. Nokia expects Devices & Services
non-IFRS operating margin during the fourth quarter 2010 to be higher than the
currently expected full year Devices & Services non-IFRS operating margin.

Nokia will provide its second quarter results and more details on its 2010 full
year outlook when it reports its Q2 2010 results on July 22, 2010.

Nokia will be hosting a conference call at 13:30 UK time (8:30 EST). The dial-in
number for media (listen only - the question and answer session will be limited
to financial analysts and investors only) is [phone]. Conference ID:
82113811.

The dial-in number for financial analysts and investors is US: [phone].
Conference ID: 82113811. UK: [phone]. Conference ID: 82236648.

A replay of the call will be available soon after the call completion. The
replay number is US: [phone]. Conference ID: 82113811. UK: +44
1452 55 0000. Conference ID: 82236648.

About Nokia
At Nokia, we are committed to connecting people. We combine advanced technology
with personalized services that enable people to stay close to what matters to
them. Every day, more than 1.2 billion people connect to one another with a
Nokia device - from mobile phones to advanced smartphones and high-performance
mobile computers. Today, Nokia is integrating its devices with innovative
services through Ovi (www.ovi.com <

http://www.ovi.com/>), including music, maps,
apps, email and more. Nokia's NAVTEQ is a leader in comprehensive digital
mapping and navigation services, while Nokia Siemens Networks provides
equipment, services and solutions for communications networks globally.

FORWARD-LOOKING STATEMENTS
It should be noted that certain statements herein which are not historical facts
are forward-looking statements, including, without limitation, those regarding:
A) the timing of the deliveries of our products and services and their
combinations; B) our ability to develop, implement and commercialize new
technologies, products and services and their combinations; C) expectations
regarding market developments and structural changes; D) expectations and
targets regarding our industry volumes, market share, prices, net sales and
margins of products and services and their combinations; E) expectations and
targets regarding our operational priorities and results of operations; F) the
outcome of pending and threatened litigation; G) expectations regarding the
successful completion of acquisitions or restructurings on a timely basis and
our ability to achieve the financial and operational targets set in connection
with any such acquisition or restructuring; and H) statements preceded by
"believe," "expect," "anticipate," "foresee," "target," "estimate," "designed,"
"plans," "will" or similar expressions. These statements are based on
management's best assumptions and beliefs in light of the information currently
available to it. Because they involve risks and uncertainties, actual results
may differ materially from the results that we currently expect. Factors that
could cause these differences include, but are not limited to: 1) the
competitiveness and quality of our portfolio of products and services and their
combinations; 2) our ability to timely and successfully develop or otherwise
acquire the appropriate technologies and commercialize them as new advanced
products and services and their combinations, including our ability to attract
application developers and content providers to develop applications and provide
content for use in our devices; 3) our ability to effectively, timely and
profitably adapt our business and operations to the requirements of the
converged mobile device market and the services market; 4) the intensity of
competition in the various markets where we do business and our ability to
maintain or improve our market position or respond successfully to changes in
the competitive environment; 5) the occurrence of any actual or even alleged
defects or other quality, safety or security issues in our products and services
and their combinations; 6) the development of the mobile and fixed
communications industry and general economic conditions globally and regionally;
7) our ability to successfully manage costs; 8) exchange rate fluctuations,
including, in particular, fluctuations between the euro, which is our reporting
currency, and the US dollar, the Japanese yen and the Chinese yuan, as well as
certain other currencies; 9) the success, financial condition and performance of
our suppliers, collaboration partners and customers; 10) our ability to source
sufficient amounts of fully functional components, sub-assemblies, software,
applications and content without interruption and at acceptable prices and
quality; 11) our success in collaboration arrangements with third parties
relating to the development of new technologies, products and services,
including applications and content; 12) our ability to manage efficiently our
manufacturing and logistics, as well as to ensure the quality, safety, security
and timely delivery of our products and services and their combinations; 13) our
ability to manage our inventory and timely adapt our supply to meet changing
demands for our products; 14) our ability to protect the complex technologies,
which we or others develop or that we license, from claims that we have
infringed third parties' intellectual property rights, as well as our
unrestricted use on commercially acceptable terms of certain technologies in our
products and services and their combinations; 15) our ability to protect
numerous Nokia, NAVTEQ and Nokia Siemens Networks patented, standardized or
proprietary technologies from third-party infringement or actions to invalidate
the intellectual property rights of these technologies; 16) the impact of
changes in government policies, trade policies, laws or regulations and economic
or political turmoil in countries where our assets are located and we do
business; 17) any disruption to information technology systems and networks that
our operations rely on; 18) our ability to retain, motivate, develop and recruit
appropriately skilled employees; 19) unfavorable outcome of litigations; 20)
allegations of possible health risks from electromagnetic fields generated by
base stations and mobile devices and lawsuits related to them, regardless of
merit; 21) our ability to achieve targeted costs reductions and increase
profitability in Nokia Siemens Networks and to effectively and timely execute
related restructuring measures; 22) developments under large, multi-year
contracts or in relation to major customers in the networks infrastructure and
related services business; 23) the management of our customer financing
exposure, particularly in the networks infrastructure and related services
business; 24) whether ongoing or any additional governmental investigations into
alleged violations of law by some former employees of Siemens AG ("Siemens") may
involve and affect the carrier-related assets and employees transferred by
Siemens to Nokia Siemens Networks; 25) any impairment of Nokia Siemens Networks
customer relationships resulting from ongoing or any additional governmental
investigations involving the Siemens carrier-related operations transferred to
Nokia Siemens Networks; as well as the risk factors specified on pages 11-32 of
Nokia's annual report Form 20-F for the year ended December 31, 2009 under Item
3D. "Risk Factors." Other unknown or unpredictable factors or underlying
assumptions subsequently proving to be incorrect could cause actual results to
differ materially from those in the forward-looking statements. Nokia does not
undertake any obligation to publicly update or revise forward-looking
statements, whether as a result of new information, future events or otherwise,
except to the extent legally required.

Nokia, Helsinki - June 16, 2010

Media and Investor Enquiries:

Nokia
Communications
Tel. [phone]
Email: [e-mail]

Investor Relations Europe
Tel. [phone]

Investor Relations US
Tel. [phone]

www.nokia.com <

http://www.nokia.com/> 

[HUG#1424403]



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