Nokia has reported a 69% profit slump in the fourth
quarter of 2008 as the economic slowdown hit handset sales.
The handset manufacturer’s net profit was euro576m (£542m),
down from euro1.84bn (£1.73bn) in the same period in 2007. Sales fell 19.5% to euro12.7bn, from euro15.8bn
a year earlier.
Nokia chief executive, Olli-Pekka Kallasvuo, said: ‘In
recent weeks the macroeconomic environment has deteriorated rapidly, with even
weaker consumer confidence, unprecedented currency volatility and credit
tightness continuing to impact the mobile communications industry.’
However, he added that the company would continue to
invest at ‘the proper pace’ in future growth, with particular focus on the
internet services market.
Nokia’s market share fell to 37%, down from 40% in the
last quarter of 2007 and 38% in Q3 2008. However, its full-year estimated
market share was slightly higher at 39%.
The company expects global mobile device volumes to
drop by 10% in 2009 compared to last year.