Citing increased competition and a worldwide economic slowdown, Nokia lowered its third-quarter market share expectations Friday.

The world's largest cell phone manufacturer pointed to "aggressive pricing of some competitors, the overall market competition, including the entry markets, and the temporary impact of a slower ramp-up of a mid-range Nokia device."

The company said it would not enter into a pricing war merely to gain market share.

"Nokia's strategy is to take market share only when the company believes it to be sustainably profitable in the long term," the company said in a statement.

The news sent the company's stock down as much as 11% in trading. Even with the lowered expectation, Nokia said it expects to see at least 10% growth this year from the 1.14 billion units it shipped in 2007.

Last quarter, Nokia had about 40% of the entire global handset market, and the company had a positive outlook for the rest of the year. But the company is facing competition on all sides.

Apple's iPhone 3G is proving to be an attractive alternative to Nokia's high-end smartphones, and companies like Samsung and LG Electronics have slashed prices on low-end handsets to grab market share in developing countries like China and India.

Nokia is just the latest handset manufacturer to feel the bite of the slowing economy. Samsung, Nokia's closest rival, saw a boost in mobile phone sales in the second quarter but warned that it anticipated tough business months ahead.

Motorola continues to lose market share, and Sony Ericsson saw its market share and profits drop dramatically in the second quarter. LG Electronics has been a bright spot, thanks to the success of handsets like the Voyager and improved sales in emerging markets.