Nokia May Reduce Sales Outlook

Nokia's (NOK Quote) midquarter update Tuesday is likely to reflect weakening demand amid an uncertain economy and looming war with Iraq.

The world's largest handset manufacturer is expected to affirm its earnings target of 15 to 19 euro cents (16 to 21 U.S. cents) a share for the first quarter, but the company is likely to cut its sales guidance to the lower end of its prior range. Nokia told analysts at the end of January that quarterly sales will be flat to 9% better than the same period last year, when sales were 8.78 million euros.

Wall Street analysts expect Nokia to tell investors that the average selling prices of phones will be lower in the quarter, as consumers spend less on new features amid the economic slowdown and threat of war. ...