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Nokia Shares Poised to Drop after Reporting Weak Sales

Shares of Nokia are down nearly 4 percent in premarket trading Thursday after the company reported weaker than expected earnings.

In what is another blow for the smartphone industry, Nokia Corporation (NYSE: NOK) reported second quarter EPS of $(0.04) versus consensus $(0.02), missing by $0.02. EPS were up 60 percent from the same quarter last year. Revenue came in at $7.40 billion versus consensus of $8.53 billion–a year over year decrease of 24 percent.

This follows a negative pre-announcement by Samsung (OTC: SSDIY) and declining sales by Apple (NASDAQ: AAPL) indicating that a large-scale shift in the cell phone market is taking place. Consumers are looking for more budget-minded phones while also delaying upgrades due to a weak economy.

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Disclosure: At the time of this writing, the author had no position in the company mentioned.

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