According to Nokia, problems with the production of its new mid-range phones and rivals’ aggressive pricing for the downrange are the factors behind market share loss. However, it says that it would recover its market share during the rest of the year.

The company says that its market share will be lower in the third quarter than its share in the second quarter that was around 40%.

The increasingly aggressive pricing strategies of rival phone makers have also been flagged up by Nokia.

Rick Simonson, who is the chief financial officer, says that the company doesn’t believe that such a strategy can be maintained.

Some analysts are considering the share price movement quite surprising.

Greger Johansson, an analyst at Redeye, says that the current share reaction is quite shocking.

Though things are not encouraging at all, Nokia believes that its market share would grow 10% in terms of shipment and the market share would be recovered in the rest of the year.

Just like other markets, mobile device market is also facing the economic downturn as the weaker consumer confidence has hit sharply the markets.