Nokia hints at higher than forecast growth

Having previously forecast that the cell phone market would grow by 10 per cent, the CFO of Nokia, Rick Simonson, has indicated that, 'with half a year visibility, we're able to say growth will be 10 per cent or more.' This upbeat assessment comes after the company posted better-than expected results for the second quarter which pushed Nokia's share price up by eight per cent--albeit that the company's share price had plunged about 40 per cent this year amid concerns the mobile industry would suffer as the credit crunch and inflation took their toll.

"Everybody's affected by the economic reality--Nokia and its customers are no different," said Simonson. "But we have an ability to play all markets. Some markets are growing strongly, some not so strongly but we aren't trapped to one market only. That's the beauty of it."

Nokia's CEO, Olli-Pekka Kallasvuo, also added to this optimistic outlook by stating that the company had received good feedback about the broad range of new products it expected to sell in its handset business. Last week, Nokia indicated that increased demand from Russia and India would help it achieve continued growth this year.

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