Nokia expects 2009 sales to slow

Nokia expects industry handset sales to be lower in Q4 2008 than it previously expected, as a result of the global economic crisis and reduced consumer spending. It also said 2009 sales will decrease on 2008’s figures.
It said it expects Q4 global handset salesto be approximately 330 million units, up still from its Q3 estimate of 310 million units. Total 2008 sales will therefore be around 1.24 billion units, rather than 1.26 billion as previously predicted.
Nokia said its share of the market will remain flat sequentially, or be marginally up, in Q4.
Nokia’s preliminary estimate for next year is that mobile device volumes will be down in 2009 compared to 2008, as a result of the continuing economic slowdown.
Nokia said, apart from continuing cost-cutting exercises within its businesses, it will curtail use of external contractors, consultants and professional services and further cut operating expenses in 2009.
Nokia chief executive Olli-Pekka Kallasvuo (pictured) said: “Nokia believes that its advantages of scale, leading brand, superior logistics, low cost and broad product portfolio are competitive advantages that will enable us to distinguish ourselves from the competition in a challenging 2009.”