Nokia Takes Tumble, More Ahead

Nokia’s issues a forward looking statement that is essentially bearish on device growth over the short haul. Their market prices loses 11% as a consequence. More –

In April through June, Nokia sold 122 million phones – with a global market share of 40 percent.

The company’s shares plunged 11 percent to Euro 13.97 (US$20.24) on the Helsinki Stock Exchange.

Nokia said the reason for an expected fall in market share included „Nokia’s tactical decision to not meet certain aggressive pricing of some competitors.“

It also said it was hit by „the overall market competition, including the entry markets, and the temporary impact of a slower ramp-up of a mid-range Nokia device.“

The company said it would continue to be guided by a policy that is „sustainably profitable in the longer term.“

But it was upbeat about the rest of the year, saying it will continue to target an increase in „its market share in mobile devices for the full year 2008.“ It gave no figures.

Nokia said that although economic gloom would also affect global phones phone sales, it „continues to expect industry mobile device volumes in 2008 to grow 10 percent or more from the approximately 1.14 billion units Nokia estimated for 2007.“

Although Nokia has reached its much long-stated goal of 40 percent market share, it has vouched to continue to aim for higher growth.

With price cutting and the imminent intro of HTC’s Android phone events like this had to happen to the legacy providers. We probably ought to expect more of this from other providers like Moto as well. The thing is though, if handset-carrier bundling was not in vogue we should be seeing a lot of red ink across the board. Any reasonable phone like say a LM225 with camera probably would be in the $50 range right about now.

Linky.