Nokia, the world's largest mobile phone manufacturer, sent shivers through the equity markets yesterday with a clear signal that global demand for handsets may be reaching saturation point.

It reported selling 128 million mobile phones in 2000, well below the 135 million units estimated by many analysts.

Shares in the Finnish company plunged more than 18 per cent at one stage before recovering to close in Helsinki down 8.7 per cent at #40. Vodafone and France Telecom, two of the world's largest mobile operators, saw their shares reach new 12-month lows.

Nokia estimates the total global market in 2000 was about 405 million phones, up 45 per cent. However, most analysts had expected Nokia's sales to be about 135 million, with the total market at over 420 million.