Nokia stock has plunged more than 14% due to the Companies failure to deliver a competitor in the Smartphone market up against Apple, HTC and Blackberry.

Shares tumbled the most in nine months after the company admitted that discounting played a key part in its weak net profit of $465.6 million.

Nokia lacks a high-end touchscreen device and is now struggling to compete in the bottom end phone market, which it has dominated for many years.

The company said that a boom in phones from so-called grey market vendors in Asia led it to revise down its market-share figures in March.

“It looks like they’ve had to drop prices very aggressively in order to keep market share afloat, both in the low end where Chinese competition is fairly relentless and at the high end where Apple and its imitators are eating into market share,” said Alexander Peterc, a Paris-based analyst at Exane BNP Paribas.

Nokia said that it will start shipping its new high-end smartphones using the Symbian 3 system in the third quarter, which is later than expected.

Nokia faces the challenge of maintaining its hold on the smartphone market as Apple brings the iPhone down from a luxury to an upscale mass-market handset, while Google Inc. makes its Android platform available on dozens of smartphones, including a Google-branded device.