Nokia profit slightly lower in 1Q

[April 21, 2011]  HELSINKI (AP) -- Cell phone maker Nokia Corp. says its net profit fell 1 percent to euro344 million ($499 million) in the first quarter, from euro349 million a year earlier.

Sales grew by 9 percent to euro10.40 billion from euro9.52 billion in the same period in 2010, while smartphone sales were up 6 percent at euro7 billion.

CEO Stephen Elop said Thursday that Nokia has now signed a "definitive" deal with Microsoft Corp. to develop software for smartphones "and already our product design and engineering work is well under way."

Nokia is the world's top cell phone maker but faces stiff competition from BlackBerry, iPhone and Android phones in the smartphone segment.

[Associated Press]

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