On July 26, 2004, Standard&Poor's Ratings Services revised its outlook on the mobile telecommunications equipment manufacturer Nokia Corp. to negative from stable, reflecting the marked deterioration of the performance and prospects of Nokia's core mobile-phones operation, notwithstanding the group's leading industry market position and very strong net cash position. At the same time, Standard&Poor's affirmed its 'A/A-1' corporate credit ratings on Nokia. Nokia's mobile-phones operation's market share, profitability, and cash flow generation have eroded materially during the first half of 2004 and pressure is expected to continue in the second half of the year. This has resulted from the intensification of competition in the mobile phones industry, the group's delay in bringing to market new products
