Tuesday, 9 September 2008

Nokia Lowers Q3 Market Share Outlook

Nokia Monday made amendments to its projected mobile device market share outlook for the third quarter of 2008, estimating it to be lower than what was delivered in second quarter 2008.

The Finnish telecommunications colossus citied the weakening of consumer confidence in multiple markets, and overall market competition, including the entry markets and the temporary impact of a slower ramp–up of a mid-range Nokia device as some of the key reasons why it will not be able to meet its previously projected market share.

“Nokia's strategy is to take market share only when the company believes it to be sustainably profitable in the longer term. Nokia has not broadly participated in the recent aggressive pricing activity - as it believes that the negative impact to profitability would outweigh any short term incremental benefits to device unit sales,” read a statement released by Nokia.

“However, Nokia continues to expect industry mobile device volumes in 2008 to grow 10% or more from the approximately 1.14 billion units Nokia estimated for 2007. Nokia also continues to expect industry mobile device volumes in the third quarter 2008 to be up sequentially.”

Nokia will report its third quarter 2008 results on October 16, 2008.