Nokia Sees 2009 Handset Market Down 5% or More

Global mobile phone industry sales volume will fall more than expected as consumers cut spending, the world's top cellphone maker Nokia said on Thursday in its second warning in three weeks.

AP

"The most recent incremental impact in the emerging markets has been more pronounced than in other markets," Nokia said in a statement.

Nokia said handset market volumes would fall by at least 5 percent next year, something many analysts were already expecting, but saw its market share rising, helping to lift its shares 2.5 percent to 10.86 euros.

"2009 will be challenging for our industry, however we have a strong, enviable base to build on and I believe we will continue to strengthen our position on many fronts," Nokia Chief Executive Olli-Pekka Kallasvuo said in a statement.

"Building on our operational flexibility, Nokia is acting to reduce costs appropriately in the current slowing environment," he said.

Nokia said it aimed to increase its market share in cellphones in 2009, something analysts said was likely as its smaller rivals would suffer more from the downturn.

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"Despite the challenging environment Nokia remains best positioned to deal with consumers needs thanks to their economies of scale and channel strategy," said Gartner analyst Carolina Milanesi.

Nokia also lowered its forecast for the broader 2009 telecoms equipment market, saying it would fall in euro terms 5 percent or more.

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