Nokia, the world's largest mobile phone maker, warned yesterday of continued uncertainty and weak sales for the remainder of 2003.

The Finnish group said sales would be hit as the mass market for handsets became saturated, and mobile phone networks delayed rolling out their third-generation high-speed services.

The news came as the group posted pre-tax profits of €1.3 billion for the first three months of this year - although the 4 per cent decline was less than analysts had feared.

While market reaction was subdued, traders in London said the news had contributed to a generally upbeat mood on an otherwise quiet day for corporate announcements.

It said the performance of equipment manufacturing unit Nokia Networks was particularly disappointing.