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Nokia: cellphone market to drop in 2009

updated 09:50 am EST, Fri November 14, 2008

Nokia on 2009 Cell Market

Nokia today updated its guidance for the fall and for 2009 to predict a significant downturn across much of the mobile space. The Finnish company continues to expect its cellphone shipments to go up along with the rest of the industry but that both its own growth and world-level business will be slower than expected. Nokia itself now expects its volume in the fall to go up a relatively modest 20 million to a total of 330 million despite the traditional end-of-year spike. The world as a whole is thus likely to move a slightly lower 1.24 billion phones versus the 1.26 billion Nokia says it has estimated earlier.

This can immediately be credited to the rapid drop in spending due to the economy as well as the "overall competitiveness" of Nokia's lineup, according to the outlook.

Guidance for 2009 will also be more severe. The company now expects the cellphone industry to ship fewer phones overall in 2009 versus 2008 as the world economic crisis continues to curb spending on phones. Such a change would reverse the historical trend of continual growth for the cellphone industry.

Nokia's new forecast follows an already difficult quarter for itself, as it lost overall marketshare and took a particularly severe blow in smartphones, where it lost share to iPhones and shipped fewer phones overall. The company has since had the opportunity to respond with its 5800 XpressMusic touchscreen phone and other new models but isn't slated to ship the 5800 to more than a few low-key markets until 2009.



By Electronista Staff
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  1. akulavolk

    Fresh-Faced Recruit

    Joined: Oct 2007

    -1

    Nokia: market to drop

    ...maybe for them. I think the key is in the last paragraph. After Microsoft, Nokia, and other incumbents predicted the failure of the iPhone, it's now eating their lunch. It'll be interesting to see if Apple's cell market tanks, or just for companies making phones that aren't in such high demand.

  1. ZinkDifferent

    Fresh-Faced Recruit

    Joined: Jan 2005

    0

    yeah, that's right, Nokia


    ... It's just the 'market overall' that's slowing down.

    It's nice to see that mobile phone companies are taking their lessons from Hollywood, to explain away that a movie franchise is doing badly -- not because of the S***** movies they make, which no one wants to see, but rather because of 'franchise fatigue'.

    People are buying less smartphones because of 'mobile fatigue, and it has nothing to do with being complacent, producing phones that nobody wants, or getting your lunch eaten by a competitor you collectively ignored - again, and again, and again.

    Nice job -- rationalizing.

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