Nokia Corp. said Thursday that second-quarter net profit fell 40 percent to ¤227 million ($290 million) as the world's largest mobile phone maker lost market share and sales remained flat. Analysts, however, noted its sales of smart phones were better than expected, according to AP. The profit was down from a net profit of ¤380 million in the same period last year, the company said. Revenue grew a mere 1 percent in the period to ¤10 billion from ¤9.9 billion a year earlier. Nokia's overall market share fell to 33 percent in the quarter 2010, down from 35 percent a year earlier. But it said market share in the smart phone sector remained at 41 percent _ unchanged from the previous year and the first quarter of 2010, despite strong competition from iPhone-maker Apple Inc., and Research in Motion Ltd., which makes BlackBerry handsets. «Nokia managed to hold onto that market,» said Neil Mawston, analyst at London-Based Strategy Analytics. «They actually sold 24 million smart phones, more than our forecasts, and that's what maybe is helping to support the shares a little bit.» Nokia shares closed up 2.5 percent at ¤7.17 ($9.21) on the Helsinki Stock Exchange. The company repeated its prediction that the global mobile market will grow 10 percent this year while its own growth would remain flat. Nokia said it sold 111 million handsets in the quarter, up 8 percent on 2009. It also sold a record 24 million smart phones, up 42 percent on a year earlier. The company remains the leader in the global mobile market, with 432 million devices sold last year, more than its three closest rivals combined, but competition in the smart phone sector was seen as being too much for the former industry bellwether.
