Nokia cuts third quarter sales forecast

Nokia is cutting its third-quarter sales forecast for networks but says it sticking to its profits forecasts for the group as a whole.

The company now expects revenues to top €7.4bn compared with an earlier forecast of €7.6 bn.

Nokia expects its handset sales to grow by between 4% and 9% over its third quarter.

It's introducing new models with features such as color screens and video cameras to attract customers at a time when markets in western Europe near saturation.

The Espoo-based company cited a "strong overall demand pickup," especially in Europe, during July and August, which it said would boost the full year result, but cautioned that mobile network operations were still facing hard times.

Last month said it would fire 900 employees at its network unit as demand for base stations and switches falters. Its competitor, Ericsson, expects industry sales of wireless networks to drop more than 15% this year.