Finnish telecom equipment maker Nokia (NOK) said on Tuesday it expected the average selling price (ASP) of phones in the first quarter to fall slightly year-on-year amid tough telecoms market conditions.

``The pricing environment... has been good. ASPs are estimated to be down slightly year-on-year for the quarter and flat in comparison to the final quarter of last year,'' Nokia Chief Financial Officer Olli-Pekka Kallasvuo told a conference call following the firm's mid-quarter update. 

Nokia earlier disappointed the market with its update, which said earnings were on track to meet or exceed its estimates but sales would likely fall short due to weakness primarily in its Network unit. 

The world's largest handset maker said sales at its mobile phone unit were expected to fall 3-7 percent year-on-year, in line with previous company comments.