Nokia, the world's leading mobile phone maker, today reported a 90% drop in its first quarter net profit to €122m amid falling sales and lower prices for its handsets.
Nokia's CEO Olli-Pekka Kallasvuo said the company's sales from January to March were dented as retailers held back on ordering new handsets.
Its market share of 37% was down from 39% the same time a year earlier, but was stable from the fourth quarter. Nokia said it expected its market share to rise in the second quarter, reassuring investors.
Nokia said its operating profit dropped by 74% to €514m, from €1.98 billion for the first quarter of 2008.
Sales amounted to €9.28 billion, down by 26.8% from €12.66 billion during the same time in 2008. Nokia reiterated that it saw global mobile device volumes falling around 10% in 2009 year-on-year.
The company wants to make some €700m in savings over the next two years as part of a restructuring plan announced last January.
