Nokia sees cellphone sales shrinking faster - Reuters
Friday, December 05, 2008 by rain
Sees 2009 handset market volume down 5 pct or more
* Q4 earnings to suffer
* Says recent impact more pronounced in emerging markets
* Sees 2009 broader equipment market down 5 pct or more (Adds company quotes, details, updates shares)
By Tarmo Virk and Sinead Carew
HELSINKI/NEW YORK, Dec 4 (Reuters) - Sales of mobile phones are shrinking faster than expected as consumers are cutting spending, the world's top cellphone maker Nokia said on Thursday in its second warning in three weeks.
"Consumers are continuing dramatically to cut back their spending," Nokia Chief Financial Officer Rick Simonson said at the company's investor day in New York, adding that he was under "no illusions" that the market would recover any time soon. "We're facing it across the world. What's recently accelerated is the slowdown in emerging markets," he said.
Nokia said handset market volumes are expected to fall by at least 5 percent next year, something many analysts were already expecting. But it sees its market share rising, helping to lift its stock 4 percent to 11.02 euros in Europe. Nokia's U.S. shares were up 54 cents or 4 percent at $13.84 on the New York Stock Exchange in afternoon trading.
* Q4 earnings to suffer
* Says recent impact more pronounced in emerging markets
* Sees 2009 broader equipment market down 5 pct or more (Adds company quotes, details, updates shares)
By Tarmo Virk and Sinead Carew
HELSINKI/NEW YORK, Dec 4 (Reuters) - Sales of mobile phones are shrinking faster than expected as consumers are cutting spending, the world's top cellphone maker Nokia said on Thursday in its second warning in three weeks.
"Consumers are continuing dramatically to cut back their spending," Nokia Chief Financial Officer Rick Simonson said at the company's investor day in New York, adding that he was under "no illusions" that the market would recover any time soon. "We're facing it across the world. What's recently accelerated is the slowdown in emerging markets," he said.
Nokia said handset market volumes are expected to fall by at least 5 percent next year, something many analysts were already expecting. But it sees its market share rising, helping to lift its stock 4 percent to 11.02 euros in Europe. Nokia's U.S. shares were up 54 cents or 4 percent at $13.84 on the New York Stock Exchange in afternoon trading.
