Nokia saw its market share take a dip to 28.9% from 34.6% last year. Gartner analyst Ben Wood stated, “Nokia has two fundamental problems. One is its relationship with operators to provide them with personalized phones, and the other is a product portfolio that is not competitive with the models offered by its rivals.”

Nearly a year ago a research group predicted Nokia would have 40% of the 2004 market. Global mobile phone sales have risen 34% in the first quarter of 2004, on target for 600 million total handsets sold.

Nokia stock (NOK) is trading slightly down.