Nokia's operating profit fell more than 96% in Q1, falling to 55 million euros ($72.5 million) as handset sales slumped and the company lost market share to competing vendors.
Nokia's revenue slumped 26.7% to 9.27 billion euros. Mobile device shipments fell 19% year-on-year to 93.2 million units, while its market share fell two points to 37%.
Nokia's APAC sales slumped 17.3% to 28.2 million units. Its shipments to Greater China fell 14.8% to 17.9 million units. Its biggest slump was in Latin America, where sales fell 44.5%, while the North American market was the only region where sales didn't decline, instead growing 30.8%.
The overall handset industry shipped 255 million units in Q1, a 14% year-on-year slump, Nokia said.
"Regarding the health of the overall mobile device market, the inventory already in the sales channels decreased substantially during Q1 due to extensive destocking by operators and distributors," Nokia CEO Olli-Pekka Kallasvuo said.
"However, it has also resulted in the demand picture becoming more predictable as we enter the second quarter," he said, adding the market was showing signs of stabilizing.
Nokia Siemens again recorded an operating loss, losing 74 million euros. But this result was a 387% improvement over its Q1 2008 results.