HispanicBusiness

Helsinki (dpa) - Nokia posted a first quarter net loss of 272 million euros (355 million dollars) on Thursday, as the Finnish mobile phone maker continued to face stiff competition from rivals.

Losses had amounted to 928 million euros in the corresponding business period of 2012.

First quarter net sales declined 20 per cent year-on-year to 5.8 billion euros, and were down 27 per cent on the fourth quarter.

Nokia said it sold 61.9 million handsets in the quarter, of which 6.1 million were smartphones, mainly Lumia models.

The share price dropped 8 per cent on the Helsinki bourse in early afternoon trading.

Chief executive Stephen Elop highlighted the good performance of the group's Lumia portfolio, with sales increasing by 27 per cent compared to the fourth quarter of 2012.

However, Nokia continues to operate in "a difficult competitive environment," he said.

Smartphone sales were down 49 per cent year-on-year but up over 6 per cent compared to the preceding quarter. Nokia said it expected Lumia portfolio sales to grow in the second quarter.

In 2011, Nokia joined forces with Microsoft in developing platforms for mobile phones, dropping its own Symbian system in favour of the Windows Phone system to regain market shares from rivals Apple and Samsung.

The average sale price of Nokia's handsets in the quarter was 47 euros, while it was 45 euros in the preceding quarter. The average sale price of Nokia's smartphones was 191 euros, up 3 per cent on the fourth quarter.