Nokia cut its first quarter operating margin outlook as fierce competition hurt its mobile phone sales.
The news sent the company's share price plunging over 14%.
It said its operating margin in the first quarter was about -3%, compared to the previously expected range of around breakeven.
It said "multiple factors negatively affected its business to a greater extent than previously expected".
Those factors included "competitive industry dynamics, which negatively affected net sales in the mobile phones and smart devices business units, particularly in India, the Middle East and Africa and China; and gross margin declines, particularly in the smart devices business unit," it said.
