Finland-based mobile handset maker Nokia has shut down its flagship store in Shanghai, its largest worldwide.

“For a while now, Nokia has been focusing on growing its presence in operator and third-party retail outlets, rather than through our own physical stores,” said a company representative.

“We are, of course, also continuously beefing up our online presence.”

Nokia has been struggling to maintain its market share in China in the face of tough competition. In its fourth quarter financial report, it posted 79 per cent decline in revenue. Unit sales were down from 14.7 million to less than 5 million.

The Shanghai flagship was opened in 2007.

Last year, Nokia has forged a deal with China Mobile to sell its handsets. It is hoping that its lower-priced Lumia models will win back Chinese tech-savvy yet budget-conscious consumers.