Nokia reiterated on Tuesday that it is fully committed to shipping a Windows Phone by the end of the year.

The finish phone manufacturer said it has “increased confidence” that the first Nokia Windows Phone will ship in the fourth quarter 2011. “Nokia remains pleased with its progress on its Windows Phone strategy,” read a statement by the company. Nokia also revealed that its second quarter outlook isn’t great. The phone maker downgraded its own outlook for Q2 2011. “Nokia now expects Devices and Services net sales to be substantially below its previously expected range of 6.1 billion to 6.6 billion euros ($8.6-9.5 billion dollars) for the second quarter 2011,” the company said.

The company was equally gloomy about its outlook for the rest of 2011. Nokia previously said it believed handset sales would remain at the same level in Q3 as Q2 and seasonally higher in Q4. “These targets are no longer valid,” said the company. “Nokia is taking immediate action to address the issues that are impacting its Devices & Services business. Nokia’s high-level strategic objectives and targets remain unchanged.”

Nokia CEO Stephen Elop explained the downgrade in the company’s expectations. “Strategy transitions are difficult. We recognize the need to deliver great mobile products, and therefore we must accelerate the pace of our transition,” he said. “Our teams are aligned, and we have increased confidence that we will ship our first Nokia product with Windows Phone in the fourth quarter 2011.”

Nokia’s stock price dropped by 15% in morning trading on the NYSE as investors and analysts reacted to the profit warning news.