Cell phone giant Nokia is hit pretty hard by the economic crisis, the Finnish company saw its first quarter net profit decline to 122 million euros, down from 1.2 billion in the same period a year earlier. Sales were down 27 percent and Nokia says there's a clear trend that consumers are buying more lower-priced handsets.
The main reason for the slump was a dramatic fall in sales, which were down by almost a third.
Nokia is implementing a cost-cutting drive during the economic downturn and announced 1,700 job cuts last month.
Sales were down by 27% to 9.28bn euros in the quarter from 12.7bn euros a year ago, Nokia said.
This included the proceeds from the sale of 93 million phones.
"The macro [economic] environment is causing many people to trade down and purchase lower priced handsets," Nokia boss Olli-Pekka Kallasvuo said.