The company said it expects average selling prices to rise toward the end of the year, as sales of more gadget-laden phones are expected to pick up. The drop in network sales is likely tied to a significant decline in capital spending by telecom carriers, said Mark McKechnie, an analyst at Banc of America Securities, who added that there was "no visibility on a recovery.". Worries about Nokia's quarter surfaced after RF Micro Devices, which makes cell phone chips, issued its own warning last week. Shipments to Nokia represent more than half the company's revenue, according to an RFMD representative.

RFMD said last week that a handset maker was delaying the launch of a "handful" of new cell phones that were supposed to 1 3 1 iphone case be released around June, a company representative said, RFMD did not identify the vendor, The representative declined further comment, However, Ed Snyder, a wireless analyst with JP Morgan H&Q, pegged Nokia as the culprit, He wrote in a note to investors that Nokia was having trouble adding new RFMD equipment to its cell phones, The fault rested with Nokia, Snyder wrote, because other companies using RFMD's new chips were not reporting problems or delays..

News.com's Ben Charny contributed to this report. The cell phone giant warns that sales will drop in the second quarter because of slower-than-expected demand for its handsets. The Helsinki, Finland-based company said it now expects to see mobile phone sales to increase between 0 percent and 4 percent in the quarter, instead of the previously expected 5 percent to 10 percent. Nokia also said sales at its networking division are expected to drop 20 percent to 25 percent, far greater than earlier guidance of a 5 percent to 10 percent decline.

Two major mobile phone manufacturers, Siemens and Ericsson, have agreed to sell software developed by 4thpass that lets customers send Java programs wirelessly to next-generation cell phones, 4thpass will announce Tuesday, Top cell phone maker Nokia has a similar arrangement, but the two new partners also will support the software package, said 4thpass communications director Kevin Keating, 4thpass, based in Seattle, sells software that lets mobile phone carriers including Nextel, LG Telecom and Telefonica Moviles send Java programs to the new generation of Java-equipped mobile phones, Phone-specific Java programs can run on different types of cell phones without having to be changed for each one, Wireless carriers hope selling Java programs 1 3 1 iphone case will increase the amount of money they can extract from mobile phone subscribers, 4thpass' software can be used to send Java programs to mobile phones and to inspect the programs to make sure they're appropriate for the phone they'll arrive on..

CNET también está disponible en español. Don't show this again. XtremeSpectrum said Monday that it closed a $12 million third round of funding. New investor POD Holding contributed to the round as did all the company's previous investors including Cisco Systems, Motorola, Alliance Technology Ventures, Texas Instruments, Granite Ventures and Novak Biddle Venture Partners. The Vienna, Va.-based company is developing chips that run on ultrawideband technology, a potential wireless networking standard that could allow consumer-electronics devices such as camcorders, laptops and digital cameras to send and receive video or audio data at high speeds. XtremeSpectrum plans to use the new funding to expand its customer support capabilities and to launch its products. The company expects to start shipping its initial products in the third quarter of this year.