“Consumers are continuing dramatically to cut back their spending,” Nokia Chief Financial Officer Rick Simonson said at the company’s investor day in New York, adding that he was under “no illusions” that the market would recover any time soon. “We’re facing it across the world. What’s recently accelerated is the slowdown in emerging markets,” he said.

Nokia said handset market volumes are expected to fall by at least 5 percent next year, something many analysts were already expecting. But it sees its market share rising, helping to lift its stock 4 percent to 11.02 euros in Europe. Nokia’s U.S. shares were up 54 cents or 4 percent at $13.84 on the New York Stock Exchange in afternoon trading.

Nokia said it does not plan to give any more financial updates or estimates until it reports earnings in January.

It said that its key devices and services unit operating profit margin should be 13-19 percent next year, with the help of the cost-cutting to which it alluded throughout the analyst day.

The mobile phone market has grown at well over 10 percent for years, having dipped only in 2001, amid that year’s economic downturn; but it will face a new challenge next year.

“Next year will be the most challenging year the mobile industry has ever faced,” said Ben Wood, research director at CCS Insight.

Compare Prices Of Nokia mobile phone sales shrinking faster