Nokia, the world's largest maker of mobile phones, has forecast that global sales of mobile phone will drop to 330 million units in the next quarter, resulting in shipments of 1.24 billion units for the entire year, down from  an earlier prediction of 1.26 billion for 2008. Last year, the company estimated global mobile phone sales at 1.14 billion.

The company blamed the global economic slowdown and consumers skittishness. "As a result of the rapid change in global consumer spending, which has impacted the mobile-device market, Nokia now expects that the industry mobile-device volumes will be lower in the fourth quarter of 2008 than previously expected," the company said in a statement.   The company also estimated that sales in 2009 will be lower than this year.

"Developed markets will fare worse and developing markets will fare better," Rick Simonson, Nokia's Chief Financial Officer, told an investor call.

Nokia, based in Finland, also indicated it will tighten its belt further next year. The company said it would "curtail use of external contractors, consultants and professional services", and continue to reduce its operating expenses.

The company also indicated that some of its customers were affected by their reduced access to credit.

The company's third quarter results, announced in October, revealed a 30 percent decline in profits. Nokia said then that hundreds of workers would be dismissed.

Iroonically, the company's Nokia 6650 flip phone (photo) went on sale at AT&T Wireless this week.