Nokia cuts Lumia 900 price in half just three months after launch Sales have been slow, and Nokia took a further hit when Microsoft said current phones will be unable to run its new Windows 8 software, rendering them obsolete. Analysts Liberum Capital said: "Nokia's sales and earnings are on a slippery slope, as seen in its lowering of guidance. Microsoft's announcement that current Windows phones cannot be upgraded to its upcoming smartphone OS, Windows Phone 8, is likely to depress Nokia's third-quarter smartphone sales further, while also putting pressure on prices and margins. The only hope for the company is that sales can revive subsequently from the fourth quarter [of this year]. Last month, Nokia said it would cut 10,000 jobs, and that its handset business would post a larger-than-expected quarterly loss. All three major credit rating agencies have downgraded Nokia to "junk" status. Smartphones using Google's Android system are expected to comprise 61pc of the global market in 2012, while Apple's iPhone could capture more than 20pc, International Data Corp said last month. Nokia is expected to report second-quarter results on July 19. Analysts polled by Reuters last week expect a loss in the handset business of €236m, up from €127m in the first quarter. Shares in Nokia fell 3.4pc to €1.45 on Monday, after last week falling to their lowest since the mid-1990s. They have slid nearly 95pc since November 2007.