Cheaper handsets Affects Nokia’s Profit
Nokia Corp., the world’s most prominent cell phone manufacturer, lost market share in the third quarter as revenues sank 30% due to descending sales and cheaper handsets sold.
Nokia said its market share in the period fell to 38% — down from 39% in 2007 and 40% in the previous quarter. It sold nearly 118 million handsets, up from 112 million during the same period last year.
Last month, Nokia had admonished that its market share would drop due to price cuts by competitors, but said it would not change its strategy.
In spite of the worldwide financial meltdown, Nokia said it anticipates sales to gain in the final quarter, with a potential slim increase in market share. It gave no figures. Nokia repeated its forecast that the overall industry will grow 10% in 2008, reaching 1.26 billion cell phones sold by the end of the year.