Nokia warns against growth expectations for handsets

Nokia, the world’s largest mobile phone manufacturer, has warned that it will not increase its share of the handset market this year because of fierce competition. The Finnish technology company also said its profit margins will continue to come under pressure as it battles the impact of the global recession.Nokia today announced a 66% drop in second quarter profits to €380m (£326m), sending shares down almost 10%. The company, which makes roughly four out of every 10 phones sold worldwide, had previously reassured investors that it would strengthen its dominance in the market this year.To read this report from The Guardian in full, see: see:Nokia reports sharp fall in sales but says worst is over
Nokia called the bottom of the mobile handset market yesterday, providing a faint glimmer of hope as it disclosed a 66 per cent fall in second-quarter profits, compared with the same period the previous year, and cut its targets for market share and profitability.Investors reacted to the target cuts with disappointment, sending the company’s shares down €1.40, or 12.6 per cent, to close at €9.65 in Helsinki.

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