Nokia lowers its third quarter market share outlook — MobileMonday Global: Industry News

^{Share dives 10%} Nokia lowers its third quarter market share outlook

6 Sep 2008 at 06:26 GMT Timo Poropudas

Nokia said Friday that now expects its mobile device market share in the third quarter 2008 to be lower than the 40 pecent of the second quarter 2008. Oin July Nokia estimated the third quarter 2008 to be approximately at the same level sequentially.

Markets reacted strongly to Nokia announcement and Nokia's share price went down about ten percent.

In its press release and during a confenreca call Nokia said that it continues to target an increase in its market share in mobile devices for the full year 2008.

Nokia expects the overall mobile device market in 2008 to be impacted by the weaker consumer confidence in multiple markets. 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 gave several reasons for the expected market share loss.

“These factors include Nokia's tactical decision to not meet certain aggressive pricing of some competitors, the overall market competition, including the entry markets, and the temporary impact of a slower ramp-up of a mid-range Nokia device, the press release said.

“Nokia's strategy is to take market share only when the company believes it to be sustainably profitable in the longer term,” said Nokia CFO Rick Simonson.

“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, Nokia said.