Nokia has reported an 88% fall in profits to 514m euros (£107m) as the handset market continues to wilt under worsening economic conditions. The manufacturer reported its results for the first quarter ended 31 March 2009 today (16 April).
Sales were down by 27% to 9.3bn euros (£8.2bn) on the same period last year, and down 24% on the previous quarter.
The manufacturer shipped 93.2 million new phones in the quarter – down 19% year-on-year and 18% consequentially. Its market share remained flat on the previous quarter at 37%.
However, the Nokia 5800 smartphone defied otherwise poor conditions by shipping 2.6 million units during the first quarter, and has shipped 3 million units since its launch at the end of November 2008.
Nokia said it expects mobile device volumes in the second quarter to be flat or up slightly, but decline will be greater in the first half than the second half of the year.
Nokia CEO, Olli-Pekka Kallasvuo, said the manufacturer is now focused on internet services to deliver future growth, despite the ‘tough environment’.
He added: ‘I am especially pleased with the performance of our first mass market touch product, the 5800 XpressMusic. Together with Comes With Music, it is a great example of Nokia providing solutions that consumers value.’