Nokia's ( NOK) fashion disaster is getting worse by the day. The big Helsinki-based wireless company stumbled for the second time in 10 days Friday, posting weak first-quarter numbers and pointing to a steep second-quarter shortfall as well. And as before, the company pointed to mistakes in its wireless phone lineup for a surprising drop in sales. Nokia's shares continued a sharp selloff that has knocked a third off their value this month. The latest setback comes just over a week after the tech titan first owned up to the fact that a phone-fashion faux pas is sapping sales growth and squeezing its industry-leading market share. Back on April 6, Nokia said its failure to sell midprice color-screen camera phones would result in a weak first quarter. On Friday, confounding its many fans, the company warned that the weakness would continue into the second period. Nokia said the mobile phone industry expanded at a 29% clip during the first quarter, but Nokia's own handset sales rose just 19%. As a result the company's industry-leading market share sagged to 35% from the company's recent readings in the high 30s and its target of 40%. "We are not satisfied with our sales development during the first quarter," CEO Jorma Ollila said Friday. "I realize that improvements require additional effort and a lot of hard work, but I have confidence in the ability of the Nokia team to address and meet customer needs in all segments by further strengthening our product portfolio." Nokia shares slid 8% in premarket trading to $14.70. For its first quarter ended March 31, the company posted earnings of 816 million euros ($979.2 million), or 17 European cents a share, down from 977 million euros, or 20 cents a share, a year earlier. Sales slipped 2% from a year ago.
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