nokiaNokia is fighting to regain share of the smartphone market.

The firm is still the world’s largest mobile phone maker, but has been slipping badly in the smartphone market, where it now has a 26% share – down from 42% a year ago.

Its profits in the three months to March were AU$464m, down only slightly from AU$472m in the same period last year.

In February, Nokia said it was joining forces with Windows to fight back against rivals including Apple, by getting rid of its dated Symbian operating system and replacing it with Windows 7.

It has now said it expects the change will take up to two years, in which time analysts believe it will slip further behind Apple.

Nokia added the move will save it 1bn euros a year – part of which will come from job cuts being announced next week.

It said the current quarter would be more "challenging" as it deals with disruptions to the supply chain following the devastation of the tsunami in Japan.

By contrast, Apple reported a profit figure of AU$5.6bn for its second quarter – boosted by the record sale of 18.6 million iPhones in the period.

But iPad sales were 4.69 million, below analysts’ expectations, which Apple puts down to customers waiting for the newly-released iPad2.

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