The global mobile handset market will shrink in value in euro terms this year for the first time, industry leader Nokia warned yesterday. This unexpectedly bleak assessment sent its shares nearly 13 per cent lower.

The world's largest mobile phone company reported a 25 per cent rise in net profit to €1.22bn ($1.94bn) for 2008's first quarter but said the value of the overall global mobile device market would drop in euro terms in 2008 compared with last year because of the weak dollar and slower global economic growth.