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The Finland-based mobile device maker said that the "mobile-device-market slowdown has continued more rapidly than previously expected since Nokia issued an update on November 14, 2008. The industry continues to be impacted by the effects of a global consumer pullback in spending, currency volatility, and decreased availability of credit."

Nokia also said it expects mobile-device industry volumes to fall by at least 5% from 2008 levels.

We have been avoiding shares of NOK since our early June coverage began, when shares were trading at the $26 level. The company currently has a dividend yield of 5.85%, based on last night's closing price of $13.30. A slowing global economy, combined with increased competition from rivals Apple(AAPL Quote) (whose iPhone has been a runaway success) and Research In Motion (RIMM Quote), will clearly make things difficult for Nokia as we move into next year. Although the company said it expects its market share of 38% of the mobile market to increase in 2009, we're very skeptical of those claims.

Nokia is not recommended at this time, holding a Dividend.com Rating of 3.3 out of 5 stars.

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