Nokia profits slide 69% in Q4

Nokia profits slide 69% in Q4


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.


Written by Mobile Today
Mobile Today


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