Nokia Naysayers Spy Pricing Pressure

For example, check out the August sales reports in some of Vodafone's (VOD) markets. While Nokia has five of the 10 top-selling phones, the most popular phone was a color-screen, camera-enabled model from SonyEricsson.

Nokia reps said they were not familiar with the Vodafone report. A Vodafone spokesman said the company doesn't comment on the sales rankings of its handset suppliers.

Analysts predict cell-phone sales will hit a record half-billion units next year as the industry gets swept up in two currents: the surge of new subscribers in emerging markets like India, Eastern Europe and South America, and the urge to upgrade to fancier phones in mature markets like Europe.

Nokia is pushing hard on the emerging market strategy, but faces a more difficult challenge trying to defend its existing markets as users swap their old Nokia phones for the dazzling features of rivals' new models.

Few observers expect efforts like Nokia's nGage video-game phone will turn the tide.

Word of Nokia's humble midquarter appraisal comes at a time when other players across the wireless industry are raising their financial projections.

Research In Motion (RIMM), the maker of BlackBerry email pagers, said Monday night that second-quarter sales would be as much as 17% higher than previously expected. Research In Motion shares rose $6.50, or 23% to $34.74 in midday trading Tuesday.

Earlier on Monday, cell-phone chipmaker RF Micro (RFMD) raised its third-quarter guidance, citing strong demand as customers work down their surplus inventory levels.

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