Shares of Nokia (NYSE:NOK) plunged 20% this afternoon after the world's top mobile phone maker reported a disappointing second quarter and warned of more misery in the third.

CEO Jorma Ollila made no attempts to paint a rosy picture. "European economies are dead," he said in a conference call. "There's no growth. Consumer confidence is low." He also pointed a finger at the weak U.S. dollar, as well as fallout from the now-contained SARS outbreak in Asia.

The company saw sales inch up 1% from last year while operating profits, hurt by a restructuring charge for Nokia Networks, fell 32%. An influx of lower-priced, entry-level phones in some markets help explain a dip in average selling prices. Nokia predicts third-quarter sales to remain flat or drop slightly on a year-over-year basis.

Other results from the sector seem to back Ollila's contention that the economy, rather than company execution, is largely to blame. Motorola (NYSE:MOT) and Samsung have already announced dismal quarters, while Ericsson (NASDAQ:ERICY) is scheduled to report tomorrow.