HELSINKI, Jan. 27 (Xinhua) -- Nokia Corp.'s global market share of mobile phones shrank by 4 percent in the 4th quarter of 2010, the world's largest mobile phone maker said Thursday.

Nokia said in its 2010 annual report that its global market share shrank from 35 percent a year ago to around 31 percent in the fourth quarter.

In the three-month period, the company sold 123.7 million mobile phones, up 12 percent from the previous quarter, but down 3 percent from a year earlier.

With competition in the mobile market growing tougher, Nokia, which performs well in the mid-end smart phone segment, is struggling in the high-end and low-priced phone segments, analysts say.

In the smart phone segment, its market share in Q4, 2010 was at 31 percent, decreasing significantly from 40 percent of the corresponding period in 2009.

Nokia CEO Stephen Elop said Thursday that faced with growing competition and a changed business environment, the company will have to adjust itself faster.

Nokia's share price at the Helsinki stock exchange fell 3.3 percent after the report's release.