Nokia shares hit as it loses out to mobile phone rivals

Nokia today saw its shares fall 11% after the Finnish mobile phones giant admitted it is losing market share to high-end rivals such as the Apple iPhone.

The shares hit their lowest level in 15 months at 7.05.

In a trading update, the firm said: "Multiple factors are negatively impacting Nokia's business to a greater extent than previously expected."

As well as struggling in the smartphone market, Nokia blamed "shifts in product mix toward somewhat lower gross margin products", operating costs and the fall in the euro.

Nokia expects to generate revenues of 6.7 billion (£5.56 billion) in the second quarter, down from earlier forecasts of 7.2 billion.