Business

Nokia cuts earnings forecast

The insanely popular iPhone is giving more than just Apple and AT&T fits.

Nokia, the Finnish mobile-phone giant playing catch-up in the smartphone race, slashed its profit outlook yesterday after failing to come up with a rival to the iPhone.

Nokia said sales in the second quarter would be below its earlier forecast of $8.2 billion to $8.8 billion, and that it expected its share of the mobile-phone market to be lower this year than last.

American depositary shares of Nokia, which said the third quarter would be “challenging” as well, fell almost 11 percent to $8.77.

Although it still controls about 36 percent of the worldwide handset market, Nokia has reshuffled its handset business a couple of times to better compete with Apple’s iPhone, RIM’s BlackBerry and a host of devices that run on Google’s Android mobile software.