Nokia lowers third quarter 2008 mobile device market share outlook

Nokia has updated its mobile device market share outlook for the third quarter 2008, with the company now expecting its mobile device market share in the third quarter 2008 to be lower than in the second quarter 2008. This compares to Nokia's earlier estimation provided in the second quarter results announcement on July 17, 2008, when the company said it expected its mobile device market share in the third quarter 2008 to be approximately at the same level sequentially.
 
Nokia continues to target an increase in its market share in mobile devices for the full year 2008.
 
Nokia expects the overall mobile device market in 2008 to be impacted by the weaker consumer confidence in multiple markets. However, it continues to expect industry mobile device volumes in 2008 to grow 10% or more from the approximately 1.14 billion units Nokia estimated for 2007. Nokia also continues to expect industry mobile device volumes in the third quarter 2008 to be up sequentially.
 
Nokia says its current estimate that its mobile device market share in the third quarter 2008 will be lower than previously expected is said to be due to multiple factors. These factors include Nokia's tactical decision to not meet certain aggressive pricing of some competitors, the overall market competition, including the entry markets, and the temporary impact of a slower ramp-up of a mid-range Nokia device. Nokia's strategy is to take market share only when the company believes it to be sustainably profitable in the longer term. Nokia has not broadly participated in the recent aggressive pricing activity – as it believes that the negative impact to profitability would outweigh any short term incremental benefits to device unit sales.