Finnish cell phone maker Nokia reported today a 30 percent drop in third-quarter net profit amid falling sales and lower prices for its handsets.
Nokia said its market share was shrinking, ticking in at just 38 percent in the third quarter from 40 percent in the previous three-month period and from 39 percent in the third quarter of 2007.
Net profit in July through September plummeted to 1.09 billion euros ($2.7 billion), from 1.56 billion euros a year earlier. Net sales dropped 5 percent to 12.2 billion euros ($16.6 billion), from 12.9 billion euros.
Last month, Nokia had warned that its market share would drop because of price cuts by competitors, but said it would not change its strategy.
"We said we would not participate in the aggressive pricing competition in the third quarter and I believe that the decision was correct and will repay us in the long run," Nokia CEO Olli-Pekka Kallasvuo said.
Despite the global financial meltdown, Nokia said it expects sales to increase in the final quarter, with a possible slight gain in market share. It repeated its estimate that the overall industry will grow 10 percent in 2008, reaching 1.26 billion cell phones sold by the end of the year.
Nokia said it would continue to focus on providing Internet services for its mobile customers, including music, navigation services and games on handsets. This month it launched Comes With Music, which provides millions of tracks for download onto Nokia handsets, and introduced its first touch-screen phone in years, the Nokia 5800, in a challenge to rivals such as Apple's iPhone.
Nokia said its market share was shrinking, ticking in at just 38 percent in the third quarter from 40 percent in the previous three-month period and from 39 percent in the third quarter of 2007.
Net profit in July through September plummeted to 1.09 billion euros ($2.7 billion), from 1.56 billion euros a year earlier. Net sales dropped 5 percent to 12.2 billion euros ($16.6 billion), from 12.9 billion euros.
Last month, Nokia had warned that its market share would drop because of price cuts by competitors, but said it would not change its strategy.
"We said we would not participate in the aggressive pricing competition in the third quarter and I believe that the decision was correct and will repay us in the long run," Nokia CEO Olli-Pekka Kallasvuo said.
Despite the global financial meltdown, Nokia said it expects sales to increase in the final quarter, with a possible slight gain in market share. It repeated its estimate that the overall industry will grow 10 percent in 2008, reaching 1.26 billion cell phones sold by the end of the year.
Nokia said it would continue to focus on providing Internet services for its mobile customers, including music, navigation services and games on handsets. This month it launched Comes With Music, which provides millions of tracks for download onto Nokia handsets, and introduced its first touch-screen phone in years, the Nokia 5800, in a challenge to rivals such as Apple's iPhone.
Source: mobiledia.com