Last week, Nokia announced one of its worst quarterly results ever, blaming tough competition for a huge 929 million euro ($1.2 billion) net loss in January through March as sales plunged, especially in the smartphone market. It said it expects no improvement in the second quarter.

The Finnish company is fighting fierce competition in the top-end from Apple's iPhone and other makers using Google's popular Android software, such as Samsung Electronics and HTC of Taiwan.

It is also being squeezed in the low-end by Asian manufacturers making cheaper phones, such as China's ZTE.

Nokia said last week that overall revenue fell 30 percent in the first quarter to 7.4 billion euros, while net sales of devices crashed 40 percent to 4.2 billion euros. Smartphone sales were down by more than half at 1.7 billion euros, as it failed to assert a challenge in the smartphone race with new Windows-based handsets a year after teaming up with Microsoft.

It hopes to remedy the slide with the Windows Phone 7, launched in October, and several new Windows-based Lumia models aimed at different markets, including the U.S. where Nokia is a minor player.

Fitch gave a guarded welcome to Nokia's new phones.

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