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Nokia lowers 2012 outlook, shares nosedive

Nokia Corp. on Wednesday warned that heavy competition will hit first-quarter performance, especially in developing markets, and that it expected no improvement in the second quarter. The news sent shares down 18 percent.

The Finnish company cited "multiple factors" that had a negative impact on sales of cellphones, including in the smartphone sector, "particularly in India, the Middle East and Africa and China."

Nokia said operating margins in the first quarter were "approximately negative 3 percent, compared to the previously expected range of ‘around break-even, ranging either above or below by approximately 2 percentage points.’" It gave no other figures.