European manager for devices Simon Lee-Smith branded the firm's handsets as "too expensive" to sell in significant quantities.
"They need to subsidise their high end smartphones because they're too expensive," he told Telecoms.com. "If Nokia wants to sell in volume, they need to bring out devices which are cost-competitive."
Lees-Smith went on to say that upwards of €400 (£343) is not an acceptable price for a smartphone. Both Nokia's recently unveiled Nokia Lumia 800 and the older Nokia N8 exceed that amount.
"All device manufacturers seem to think that a €400-plus device is the norm," he added. "Well, it isn't. Customers and operators won't pay that cost for a device which doesn't differentiate sufficiently. Let's not let the technology and cost curve ahead of the demand curve."
Nokia's Lumia 800 is expected to hit stores in Britain on November 16, with early indications that the handset will be available SIM-free for £449.95.
Watch a video introducing the Nokia Lumia 800 below: