Nokia has posted net sales of 9.3 billion euros in 1Q09, down 27 per cent both year-on-year and sequentially.

Net profits reached 122 million euros, heavily down on the 1.2 billion euros in the same period in 2008.

Devices & Services net sales hit 6.2 billion euros, down 33 per cent YoY.

Services (i.e. Ovi and other content offerings) net sales were the star performer, up 79 per cent YoY to 150 million euros, albeit from a tiny base.

Nokia estimates the industry as a whole sold 255 million handsets during the period, down 14 per cent YoY and down 16 per cent sequentially.

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It's own device volumes were down 19 per cent YoY at 93.2 million units, equivalent to a 37 per cent share of the total market (the same as 4Q08).

The touchscreen 5800 XpressMusic handset shifted 2.6 million units in 1Q09, with cumulative shipments of more than 3 million units since its launch in November.

Nokia shipped approximately 5 million Nseries devices and over 3 million Eseries devices during 1Q09.

Looking forward, the company reiterated its earlier forecast that global handset shipments would contract by 10 per cent this year and stressed that falling demand was stabilising.

Nokia CEO Olli-Pekka Kallasvuo said: "In what has been an exceptionally tough environment, we continue to invest in a focused manner in consumer Internet services delivered across our broad portfolio of mobile devices. Combined, these solutions will drive our future growth.

"As an example in Q1, I am especially pleased with the performance of our first mass market touch product, the Nokia 5800 XpressMusic. Together with Comes With Music, it is a great example of Nokia providing solutions that consumers value."