Finnish mobile handset-maker Nokia today slashed its sales forecast for the second quarter amid stiff competition in the smartphones segment.

The world’s largest cellphone-maker said that multiple factors, including competition and the falling euro, are impacting its business to a greater extent than before.

In the second quarter of 2010, the multiple factors affecting the company included “the competitive environment, particularly at the high—end of the market, and shifts in product mix towards somewhat lower gross margin products.”

Nokia is facing stiff competition from Apple’s iPhone, Research-In-Motion’s Blackberry and Google’s Android in the smartphone segment.

In a statement, the Finnish firm said it now expects sales from the devices and services segment to be “at the lower end of, or slightly below, its previously expected range of 6.7-7.2 billion euros for the second quarter, 2010.”

Nokia pointed out that the revised projection is mainly on account of lower than previously expected average selling prices and mobile device volumes.

The entity also noted that recent depreciation of the euro is hitting the firm’s cost of goods sold, operating expenses and global pricing tactics.

Moreover, the company is anticipating its “mobile device value market share” to be slightly lower this year compared to 2009.

“This update is primarily due to the competitive situation at the high—end of the market and shifts in product mix. This is an update to our previous target to increase our mobile device value market share slightly in 2010, compared to 2009,” it added.

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