Captain Eoin Morgan admitted England were simply unable to cope with the swinging ball after New Zealand exposed grave fears over their World Cup hopes in Wellington.

England were bowled out for 123 as Tim Southee produced a vintage display of swing bowling to return seven for 33, the best figures by a New Zealand bowler in one-day internationals.

The Black Caps then raced to the target in just 12.2 overs, on the back of Brendon McCullum's whirlwind 77 from 25 balls.

"Credit goes to them. It was probably the best bowling display we've come across since we've been down this side of the world, which says a lot because we've played against Australia," Morgan said. "Today we couldn't cope with it."

England lost their last seven wickets for just 19 runs to post their lowest ever total at a World Cup on foreign soil. Their capitulation came after Morgan had won the toss and elected to bat under a cloudless sky.

"With the benefit of hindsight I wouldn't have won the toss and batted," he said. "If I had of known it was going to swing for that long, we batted for 35 overs, and it swung throughout.

"The only thing that occurred to me this morning was that there wasn't a cloud in the sky and it hadn't rained here for a while. If it looks like it's going to swing obviously I have no worries in bowling first because that's our biggest strength. In the first 10 overs if we can take three or four wickets we're right in the game.

"Everything about today said bat and I got it wrong."

England have now suffered two wide-margin defeats to start their World Cup after they were swept aside by Australia by 111 runs at the MCG last Saturday. Scotland, their next opponents in Christchurch on Monday, will go into that match with more confidence having taken seven New Zealand wickets in their own clash with the hosts.

"These first two games we said were going to be difficult games playing against the two favourites in their home conditions but we shouldn't be beaten by this amount," Morgan said.

"There's no way. Maybe today we were out-skilled but certainly the first game we played against Australia we were way below par."

Asked to explain why he thought England have been so far off the pace at the tournament - after they had prepared for the World Cup by reaching the Tri-Series final - Morgan said: "I can't. We are not doing our basics right. We are not reproducing what we practice.

"We envisaged a future of having lost our first two games but not by this amount. We can still make the quarter-finals, but the sooner the better we start winning and getting momentum into our next games."

England have just two days to pick up the pieces of this defeat with the potential banana skin of Scotland awaiting them.

"Things are pretty quiet at the moment as naturally they are going to be," Morgan said.

"We're very disappointed. Over the next day or so everyone will look at themselves individually and how they can improve for the game against Scotland. I think collectively we're going to have to get tighter as a group and produce collective performances that we've been searching for."

England must also decide during the next couple of days whether they must make changes after they retained an unchanged line-up in Wellington.

"Certainly I don't want to go into a state of panic where we make three or four changes in the one game," Morgan said. "That's certainly not what I'm about. I've always believed in making good decisions and backing the right players at the right time.

"At the moment we have a squad of players where any of them can play, but the XI that played today I believed were the best to win today's game.

"Given conditions if they change down in Christchurch we'll change plans accordingly but just because we were outperformed today doesn't necessarily mean I'm binning anybody for Monday."

On a personal note Morgan felt he somewhat turned a corner by posting a modest 17 off 41 balls to end his run of three successive ducks, but it was scant consolation.

He added: "I feel a lot better after today. I have struggled these last couple of innings. Having some time in the middle has certainly helped. I am probably further along than I was earlier this week."

Southee was humble after posting New Zealand's best-ever one-day bowling figures, which included a devastating five wickets in 20 balls, instead choosing to highlight how it was a good team display.

"Someone did mention that. It just goes to show that is was another great team performance that we have shown today," he said.

New Zealand's win was also well crafted with the bat as skipper McCullum stepped up to the crease as a man on a mission, hitting the fastest one-day fifty in World Cup history off just 18 balls.

Morgan also paid high praise to his opposite number, who eventually departed on 77 from 25 deliveries with victory almost a certainty for the co-hosts.

"He (McCullum) is not the ideal candidate to be bowling at when you have got 123 on the board," Morgan added. "When it comes off, he is the most destructive batsman in the world. Credit to him, he played really well."

McCullum was understandably thrilled with his side's display as they underlined why many consider them to be one of the favourites to win the World Cup. "It was an incredible performance. We wanted to bat first as well," he said.

"Tim Southee and Trent Boult, when they bowl like that they are pretty hard to play against. A world-class performance and the crowd was amazing. I really enjoyed playing in front of such a big crowd."

Joe Root was the lone England batsman to supply any worthwhile resistance with 46. But Southee produced a vintage display of swing bowling, after Morgan opted to bat under a cloudless sky, as he bewildered the England batsmen from the start.

It was the 13th time in their past 19 ODIs that England have been bowled out and they lasted only 33.2 overs at the Wellington Regional Stadium.

Openers Ian Bell and Moeen Ali were both undone by excellent deliveries. Gary Ballance survived a close lbw review before he toe-ended a pull off Trent Boult to Kane Williamson at short cover.

Out-of-form skipper Morgan was therefore sent out with his team in trouble at 57 for three.

He was able to guide away his first run in six innings, and since he made two against Australia on January 30, off Daniel Vettori before dutifully digging in alongside Root in a 47-run stand.

But when Morgan tried to open his shoulders for the first time he fell victim to a superb diving Adam Milne catch on the long-on rope.

McCullum sensed his chance to make a decisive move and brought back Southee to devastating effect as he snared five more wickets in 20 balls.

James Taylor fell victim to another superb outswinger, which clipped his off stump before he had scored.

In Southee's next over Jos Buttler wafted at a ball that left him before Chris Woakes became the fourth batsmen to be bowled by the right-armer as he defended down the wrong line.

Stuart Broad stepped away to leg and got a leading edge to Vettori at mid-on before Steven Finn edged to Ross Taylor at first slip.

By that stage the home crowd were chanting Southee's name and England's meek surrender was finalised when Root top-edged a pull at Milne and was held by Vettori at fine-leg.