Nokia sent jitters through the markets yesterday when it confirmed 4Q profits were lower than expected and warned that its FY handset volumes would be down ten per cent from 2008 levels.

The company reiterated its drive to cut costs at its handset unit by 700 million euros this year, but that could stop its share price tumbling 5.8 per cent in wake of the news.

Sony, Microsoft and LG have also taken battering on the markets as consumer demand slumps.

Microsoft announced yesterday that it is to shed 5,000 jobs over the next 18 months. Its share price has since dropped 12 per cent in the US.

LG Electronics has experienced a record quarterly net loss off the back of lower mobile and flat-screen TV sales.

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And Sony has seen its share price decline by 6.78 per cent this morning in a bad day in the Tokyo markets.