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Nokia, the world’s largest mobile phone maker, issued its second profit warning in three months yesterday blaming a “sharp pull back” in global consumer spending over the past few weeks.

It also forecast that global handset sales would fall in 2009 as the economic downturn picked up speed. If handset sales fall next year, it will be the first drop for eight years.

Sales in Western Europe have also slowed in recent years because of high levels of mobile saturation. Phone makers are increasingly exposed to a consumer-led downturn. Matthew Key, the chief executive of O2 Europe, who revealed the group’s third-quarter results yesterday, said that customers are increasingly opting not to upgrade their phones.

Manufacturers are also being hit in emerging markets, where sales of cheap handsets have helped to fuel Nokia’s growth in the past couple of years.

Now, however, the rise in fuel and oil prices has left consumers reluctant either to buy their first phone, or to upgrade their handsets. “In the last few weeks, the global economic slow-down, combined with unprecedented currency volatility, has resulted in a sharp pullback in global consumer spending,” Nokia said in a statement.

“The weaker consumer spending has impacted many industries, including the global mobile device market. The mobile device market has also been hit by the more limited availability of credit, which has limited the purchasing ability of some of our trade customers.”

Analysts believe that handset sales could fall by as much as 27 per cent next year as Europe and America struggle through a recession.

The Finnish group said that it would take additional decisive action to reduce costs significantly, including cutting back its use of consultants and contractors.

Nokia also reduced its forecast for global mobile phone sales this year.

Only two months ago Olli-Pekka Kallasvuo, the chief executive of Nokia, predicted 1.26 billion handsets would be sold across the industry, equal to 10.5 per cent growth, compared with 16 per cent growth in 2007, when sales broke through the billion mark for the first time. Yesterday he reduced that target to 1.24 billion.

Nokia said that it expects sales and profit at its mobile division to be reduced in the fourth quarter as a result. However, the company said that it still expects at least to hold its market share for the last three months of the year, compared with the third quarter.

Nokia issued a third-quarter profit warning in September as it announced its 38 per cent market share was a decline on the second quarter.

Mike Grant, a partner at Analysys Masson, the technology analysts, said: “The driver for handset growth in more developed economies with saturated markets has been more about fashion and the desire for the latest and greatest shape or colour.” He added that people thought they could no longer afford such luxury.

Ten days ago Nokia unveiled a range of cheap handsets aimed at emerging markets, including two internet and e-mail-enabled models for under $100. It also launched its Ovi internet service, aimed at a new generation of Indians. Mr Grant said: “This is the first time internet-enabled phones have been offered for under $100. With Ovi in India it is possible that many Indian people will have their first e-mail address as ovi.com sent from their mobile phone.”

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