Nokia Q1 Sales Drop

Nokia, the world’s biggest cell phone maker, has posted 82 percent drop in the first quarter as economic slowdown has affected the sales of high-tech gadgets especially mobile phones which are the main products of the electronic giant.

According to Nokia, its shares fell to 0.03 euro from 0.32 euro year-earlier quarter, adding that its net profit fell 122 million euros from last year’s1.22 billion euros. Meanwhile, the company said that sales dropped by 27 percent to more than 9 billion euros as consumers’ spending continues to decline due to financial crisis.

Experts said that demand for high-tech gadgets especially mobile phones have dramatically declined for the past few months as consumers are apprehensive to spend money due to dispensable income and unstable labor market.

When asked how to regain its losses, Nokia said it will restructure its business to regain its market share in the second quarter of this year.

In an effort to boost its sales and to urge consumers to purchase new phones, Nokia has recently introduced budget-priced smartphones including its widely-popular 5800 MusicXpress which has sold more than 2.6 million units in the first quarter.

Nokia also predicted that its mobile gadget market is expected to decline by 10 percent in 2009.