Cell Phone Makers Fall On Nokia Q3 Warning

London (AHN) - Nokia Corp. warned on Friday that their market share for the third quarter would likely fall due to aggressive price cuts by rivals and a production glitch during the quarter.

The cell phone maker said it is losing marker share because they did not aggressively cut phone prices with their competitors, opting to focus on sustained profitability in the longer term.

"We're not talking about several points of decline in market share here," said Chief Financial Officer Rick Simonson, according to MarketWatch "This isn't all competitors and this isn't all markets," he added.

Nokia has about 40 percent of the cell phone market and still expects market share to grow for their full year despite the third quarter pullback.

The company is also battling a drop in the average selling price of their products as higher volumes of cheap phones sold in emerging markets has led price down to an average of 74 Euros, from 79 Euros the previous quarter.

Nokia's sales are also being pressured by an unfavorable exchange rate due to the weak dollar.

The Nokia news pressured other stocks in the same space. Research in Motion, Motorola and Ericsson are all trading lower on Friday.

Shares of Nokia are down 8 percent to $20.52 in Friday afternoon trading.