Nokia lowered its fourth quarter expectations for both its handset and networks divisions as it expects consumer spending to drop in the face of widespread economic distress.
"In the last few weeks, the global economic slowdown, combined with unprecedented currency volatility, has resulted in a sharp pull back in global consumer spending," the company said in a statement.
For the full year, the world's largest handset maker said it expected volumes of 1.24 billion handsets, down from the 1.26 billion that the firm forecast in October. The company also said it expected the global market for fixed and mobile network infrastructure "will be down in euro terms in 2009 compared to 2008."
The weakening economic conditions have already hurt Nokia's market share, which dropped to 38 percent in third quarter, down from 39 percent in the year-ago period and 40 percent in the second quarter of 2008. Nokia said it will take steps to cut costs in response to market conditions.
For more:
- see this WSJ article (sub. req.)
- see this Unstrung article
Related Articles:
Nokia Q3 profit slides nearly 30%
Nokia's No. 1 market position threatened by price-cutting competitors