The pressure being applied by Apple and Canadian Company Research In Motion who make the Blackberry smartphone is staring to hurt European phone maker Nokia, the world’s largest mobile phone who last night reported a $1.6 billion loss for their third quarter and a 20% downturn in sales.The Company also wrote down the value of its wireless network.

Despite the decline in sales the Company is stil holding onto it’s 38 percent global market share however this is expected to fall as brands like LG and Samsung take away market share say analysts.

Nokia acknowledged that its lead in smartphones, the fastest-growing segment of the market, had fallen to 35 percent from 41 percent, losing ground to Apple’s iPhone and Research in Motion’s BlackBerry devices.

In the same period last year Nokia made a $2.1 billion profit.

Analysts said Nokia was being hurt by the slowing global economy, ferocious price competition and a weak portfolio of smartphones.

The New York Times reported “Apple and RIM are really starting to eat into Nokia’s lead in smartphones,” said Jan Dworsky, an analyst at Handelsbanken Capital Markets in Stockholm.

Nokia said the average sale price for one of its mobile phones fell by 14 percent during the past 12 months.

 “The big drop in Nokia’s operating profit margins, coupled with the significant loss in market share for smartphones, is what the market is really concerned about,” Mr. Dworsky said.