Nokia
The Finnish company said it expects to see mobile phone sales to increase between 0 percent and 4 percent in the second quarter, instead of the previously expected 5 percent to 10 percent.

In its networking division, Nokia foresees sales dropping by 20 percent to 25 percent, far greater than the 5 percent to 10 percent originally forecasted.

Mark McKechnie, an analyst with Banc of America Securities, told CNET that the decline in capital spending by telecom carriers has contributed to the drop in network sales. He added that there is no sign of recovery in sight.

Despite lower sales figures, Nokia expects its share of the mobile phone market to increase to 38 percent for the second quarter, with year-to-year volume growth increasing more than 10 percent. The company estimates overall mobile phone market volume to grow in the second quarter by 5 percent, compared with 89 million in the first quarter.

Palm
The Santa Clara, California-based company said that fourth-quarter revenue would be $230 million, instead of the $290-million originally forecasted. In addition, the company said it will not meet its breakeven profitability expectations for the current quarter.

Despite a downturn in the demand for handhelds, Palm reported that the share for Palm branded devices in the U.S. grew over the last three month, while the worldwide market share held steady.

"Demand in the spring did not materialize as we had previously expected," said Eric Benhamou, Palm’s chairman and CEO, but "we remain optimistic about the long-term growth opportunities in the sector."

Benhamou tried to reassure investors that Palm is confident that its "investments in new markets, new geographies, and a new generation of handhelds will result in renewed and profitable growth in the years ahead."