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2009-07-16 11:30:30
Nokia, the world's biggest mobile phone maker, saw a 66% slide in quarterly
profit as the economic downturn hit demand for handsets.
The news sent Nokia's share price sharply lower.
It made a net profit of 380m euros ( 326m) in the April to June quarter, down
from 1.1bn euros a year earlier.
Rival phone maker Sony Ericsson also reported a quarterly loss and warned that
the rest of the year would remain difficult for the company.
'Tough quarter'
Nokia said it had put in a "solid performance" in "another tough quarter".
It said it was unlikely to be able to increase market share this year despite
predicting earlier it would be able to.
"Competition remains intense, but demand in the overall mobile device market
appears to be bottoming out," said Olli-Pekka Kallasvuo, Nokia's chief
executive.
Nokia's shares fell 8.8% to 10.12 euros.
'Challenging'
Sony Ericsson made a loss of 213m euros ( 183m; $300m) in the April to June
quarter, slightly less than the 293m euros deficit in the first quarter.
"As expected, the second quarter was challenging and we still believe the
remainder of the year will be difficult for Sony Ericsson," the firm said.
"Our performance is beginning to improve because of our cost reduction
activities," it added.
The company has said it will cut a total of 4,000 jobs.
Analysts say that the mid-range music and camera phone Sony Ericsson focuses
on, are less in demand than basic models or high-tech gadgets such as the
iPhone.
Sony Ericsson said it expected the global market for mobile phone handsets to
shrink by at least 10% from 1.19 million units in 2008.