Nokia, the world's top handset maker, today reported second-quarter earnings fell 66 percent as the economic downturn sapped demand.
The Finnish company, which sells about four in 10 mobile devices worldwide, posted a $535 million net profit, down from $1.5 billion in the same period a last year.
It shipped 103 million devices in the quarter, down 15 percent from a year earlier.
"We are balancing short-term priorities with our longer-term growth ambitions as elements of the mobile handset, PC, Internet and media industries converge to form a new industry," said Olli-Pekka Kallasvuo, Nokia's Chief Executive. "Competition remains intense, but demand in the overall mobile device market appears to be bottoming out."
Over the past few months, the Nokia has launched a number of high-end devices such as the 5800, E75 and N97.
Though market leader Nokia has weathered the global recession better than some smaller competitors, it is facing tough competition from the likes of Apple and Research in Motion, the makers of the iPhone and BlackBerry.
Thus far, the company's broad focus on both high-end smartphones and cheaper devices has helped it retain decent sales and earnings.
