Mobile phone manufacturer Nokia has reported a slump in second quarter profits, as the credit crunch continues to impact heavily on consumer demand for new mobiles.
New figures from the Finnish phone giant show that profits for the period from March to the end of June stood at £330 million.
This represents a fall of 66 per cent compared with the same quarter last year.
However, responding to the figures, Olli-Pekka Kallasvuo, chief executive of Nokia, remained bullish that the market has hit the bottom and will improve from hereon in.
He said: “Competition remains intense, but demand in the overall mobile device market appears to be bottoming out.”
Nokia’s third quarter performance is expected to be boosted by recent high profile handset launches, such as the iPhone 3G S challenger the Nokia N97.
Features of the N97 include a massive 32GB of onboard memory, a large 3.5-inch TFT touchscreen, five megapixel camera with Carl Zeiss lens and native support for OVI and Skype.