We all know the economy is tough right now all around the world and everyone’s spending has slowed way down.  But is that always the reason for buying less of a previously popular product?

Today Gigaom reports that Nokia’s is predicting a 10% drop in mobile phone sales for 2009.  Previously that number was only 5% but they have doubled that number and are even more gloomy about the whole subject.  Now this whole things sounds sad but what they aren’t saying is that they are going to be releasing a phone as a competitor to the iPhone.

Now that Palm has released it’s information about the Palm Pre and it’s webOS, Nokia has to be worried that instead of being #2 in the race they have dropped to #3 or #4 depending on where you place Google’s Android.  I think that this situation has affected Nokia’s earning expectations more than anything to do with the economy.

To me it just sounds like a convenient excuse for poor sales when in reality it is due to being pitted against a power house like Palm with a superior product.

Check It Out> Gigaom, Palm Pre (OS Attack), Palm Pre, Nokia Q4 Earnings