This surely comes as a surprise. Nokia, which is currently the number one mobile-phone manufacturer, has reduced its market share outlook. Nokia will not give up its top position but it appears to have some problems.

Their problems seem to be the current state of the economy worldwide and Nokia’s decision to stay out of any price wars with the competition. Therefore Nokia is expecting it’s market share to drop this quarter from the previous 40%.

It’s not only Nokia that will report lower profits and share drops. Other mobile manufacturers and carriers will feel the same symptoms. Sony Ericsson had a very bad quarter and they might even go ahead and break up. Vodafone is also reporting rising costs and it will see profit loss in various markets. Chip manufacturers for mobile devices are also taking a hit so it would appear that everyone looses.

Despite the bad times Nokia will expect the total number of unit sales to grow by 10% more this year, which means it’s still going to make a profit. Whatever happens I am sure Nokia will do just fine in the mobile business for now. It’s others that I’d be worried about.