Nokia's operating margin will raise to 17% over the next to two years

Nokia said its group announces margin was expected to be 17% in the next one to two years, compared to 15% in November 2006.

The group's core mobile manufacturing business is expected to have a 20%operating margin in the next two years, compared to the 19% achieved during the first three quarters of 2007.

But investors expected slightly higher figures, so Nokia shares declined 4.4% yesterday to 26.34 euros per share.

"Their new margin targets weren't as good as needed - they're already on those levels," said SEB analyst Leif Pettersson.

Carolina Milanesi, an analyst at research firm Gartner said: "It's getting tougher for everyone. Nokia expects next year to be more competitive than this year."

Current market capitalization of Nokia on the NYSE is $153.17 billion
Current P/E ratio is 15.82
Current ADR price on the NYSE: $39.11