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Nokia in crisis as users hang on to handsets
16 Apr 2009Nokia today reported a 90% plunge in profits as consumers stopped splashing out on new phones.
The world's biggest mobile-phone maker said that net profits dropped to €122 million (£108 million) in the first three months of this year, down from €1.2 billion for the same period last year. Sales fell by 27% to €9.3 billion.
The Finnish group sold 93.2 million handsets between January and March, almost a fifth fewer phones than it sold in the first quarter last year. But Nokia's shares rose by 10% as investors' fears that it would downgrade its forecasts for the phone market proved unfounded. The company restated its prediction that mobile-phone sales will fall around 10% this year.
