Nokia saw profits fall yet again in the last quarter of 2010, as operating profit dropped by 26 per cent compared to the same period in 2009.
The firm's devices and services segment saw a 24 per cent fall, with pre-tax profits going down by 22 per cent to 833 million (718 million).
Nokia shipped 123.7 million units in the fourth quarter, representing a decline of three per cent year-on-year.
The Finnish manufacturer did not have any big expectations for the coming months, with operating margins expected to fall between seven and 10 per cent.
Recently-appointed chief executive Stephen Elop was positive about the results, yet said the company needs to change.
"In Q4 we delivered solid performance across all three of our businesses, and generated outstanding cash flow. Additionally, growth trends in the mobile devices market continue to be encouraging," Elop said.
"Yet, Nokia faces some significant challenges in our competitiveness and our execution. In short, the industry changed, and now it's time for Nokia to change faster."
The company has seen its market share of the mobile segment eroded away in recent years with the arrival of a range of popular smartphones.
The mobile segment has become increasingly competitive of late, as providers have had to make sharp moves in both the software and hardware sides of the business.
A recent Gartner report predicted global revenue for mobile application stores would grow up to a 1,000 per cent between now and 2014.
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Tom Brewster is currently an associate editor at Forbes and an award-winning journalist who covers cyber security, surveillance, and privacy. Starting his career at ITPro as a staff writer and working up to a senior staff writer role, Tom has been covering the tech industry for more than ten years and is considered one of the leading journalists in his specialism.
He is a proud alum of the University of Sheffield where he secured an undergraduate degree in English Literature before undertaking a certification from General Assembly in web development.