Nokia (NYSE: NOK) plunged 14 percent Tuesday after announcing preliminary estimates for 2000 phone sales and global market expectations.
Shares closed up 0.81 to 43.13 Monday. The stock got a boost in December when it extended revenue growth targets into 2003, and said it expects continued high profitability.
The data comes just before results from rival Motorola (NYSE: MOT), off 4 percent, or 0.88 to 20.87. Ericsson (Nasdaq: ERICY), which will report cellphone figures along with financial results on Jan. 26, was down 8 percent, or 0.88 to 10.5.
The company said it had sold over 128 million phones and expects the global market in units at 405 million for 2000. That figure implies Nokia increased its market share by around 4.5 percent to 31.6 percent in 2000.
It did not comment on pricing, profitability, margins or outlook.
"Clearly the risk has increased, particularly with the current economic situation, however we believe that Nokia's superior supply chain management and its ability to reach the end market will keep it ahead of its peers," said Merrill Lynch analyst Adnaan Ahmad in a research note Tuesday.
Ahmad said the numbers were below his expectations, which included 135 million units for Nokia, or 33 percent market share, and 420 million units for the total market. He added that he expects Nokia to gain share and achieve a 35 percent market share
Shares in Europe are down at least 12 percent, creating a buying opportunity, Ahmad said.
"It is tough to tell what the situation is given we only have one figure, but where the share is now the reaction looks to be a little overdone," said Ed Protheroe, European Technology Portfolio Manager at Aberdeen Asset Management.
Protheroe said Nokia's sales weakness was likely a sector-wide issue.
"If the market leader is 'suffering' then I don't see why any other players would be immune," he added.
-- Reuters contributed to this report.
Nokia jumps on extended growth targets