Nokia has released its third quarter results revealing a drop in revenue and market share as competition grows and economic troubles press.
Net income dropped 31 per cent, net sales were down five per cent and market share was estimated at 38 per cent, down from 39 per cent last year.
Despite the results Nokia chief executive Olli-Pekka Kallasuvo (pictured) remained upbeat.
He said: “As a result of our strong operational management and market position, Nokia was able to achieve solid margins and operating cash flow of 1.3 billion euros for the third quarter of 2008.
“With our scale, brand, improving product portfolio and low cost structure, we believe Nokia is well positioned for the current times.”
Some believe these drops are early signs of the declining global economy, and with sales in emerging markets also suffering, companies who have invested heavily in these markets may not avoid the effects.
Ovum principal analyst Adam Leach said: “It shows Nokia isn’t immune to the global economic climate.
“It has dropped a few percentage points in market share but that won’t be worrying too many people in Helsinki.”
He added: “It’s interesting that China moved ahead quite strongly but other emerging markets such as Latin America did really poorly. It shows that the global economy is affecting all the markets.
“Other manufacturers are likely to take bigger hits from the downturn, especially those with a bias towards high end handsets.”