Nokia has had a slow start to 2011 after posting poor figures for Q4.
The company’s profits have fallen 21 per cent during the fourth quarter as it continues to struggle against competitors in the smartphone market.
The worlds biggest phone maker has also seen a fall on both handset sales and its market share.
Nokia head Stephen Elop claimed that, despite the drop in profits, the fourth quarter results were “solid” and insisted that the current market position offered decent prospects for growth.
“Nokia faces some significant challenges in our competitiveness and our execution,” Elop said in a statement today.
“In short, the industry changed, and now it's time for Nokia to change faster.”
According to the BBC, the company expects that operating margins would fall between 7 - 10 per cent at its phone division, a drop of 11.3 per cent compared to the last quarter.
Analysts have also predicted that Nokia may drop its ailing Symbian mobile OS, which is being overshadowed in the mobile market by the likes of Blackberry, Android and iOS. The company cut 560 jobs from the Symbian foundation in December.