John Walko
EE Times Europe
09/05/2008 1:40 PM
LONDON — Finnish mobile phone giant Nokia Oy spooked stock markets in both Europe and the U.S. as it reduced significantly its third-quarter market share outlook.
The company’s share price fell by as much as 10 percent in early trading Friday (Sept.5) on the Helsinki exchange as Nokia warned that overall mobile-phone market would be hurt by weaker consumer spending in many regions.
The company said its market share in the third quarter would be lower than in Q2 due to several factors, including a decision not to price some of its phones as aggressively as rivals, heightened competition in the market for cheap phones and the slower-than-expected ramp-up of a mid-range device.
In July, Nokia said it expected its market share to be stable in the third quarter, at around 40 percent of the global market.
It stressed it continues to target an increase in market share for the full year.
The phone maker also warned that the overall mobile phone market in 2008 would be hit by weaker consumer spending but said it still expects mobile industry device volumes to grow 10 percent and to be up sequentially in the third quarter.
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