Nokia's net profit expected to drop

The world's largest handset maker Nokia is expected to report a 1.9 percent drop in fourth-quarter net profit on Thursday as the vendor faces falling handset prices and focuses on low-margin handsets. Nokia's results may be a sign of the times as vendors look to emerging markets for growth by offering not-so-glamorous ultra-cheap handsets in the sub-$40 range. The jury is out as to whether vendors can make money from this market where it's clear that profits are going to be squeezed. Both the GSM Association and the CDMA Development Group are working on initiatives to lower handset costs, while chipset makers are developing products for the ultra-low tier market. We'll see how cheaply they can build handsets and still make a profit.

For more about Nokia's expected fourth quarter results:
- read this article from Dow Jones


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