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Friday, 14 November 2008 - Nokia sees cellphone, gear market falling in 2009 | Technology |
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      My Profile    Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Technology > Article Home Business & Finance News U.S. Politics International Technology Internet Holiday Gift Guide Entertainment Sports Lifestyle Oddly Enough Environment Health Science Special Coverage Video Pictures You Witness The Great Debate Blogs Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters You Witness News Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Nokia sees cellphone, gear market falling in 2009 Fri Nov 14, 2008 4:17pm EST   Email | Print | Share | Reprints | Single Page [-] Text [+] By Tarmo Virki and Sakari Suoninen HELSINKI (Reuters) - Top handset maker Nokia Oyj said on Friday the world's mobile phone market would fall in the fourth quarter and next year as an economic slowdown crimps consumer demand around the world. It forecast 1.24 billion phones would be sold worldwide this year, down from a previous estimate of 1.26 billion, and said handset market volumes and the overall telecommunications equipment market was expected to fall next year. "The warning dovetails well with Qualcomm and Intel -- rapid recent deterioration of consumer electronics demand," said analyst Tero Kuittinen at Global Crown Capital. The worst financial crisis in 80 years has weakened economies around the world and official data on Friday showed the economy of the 15-nation euro zone shrank for the second quarter in a row. "In the last few weeks, the global economic slowdown, combined with unprecedented currency volatility, has resulted in a sharp pull back in global consumer spending," Nokia said in a statement. The strengthening U.S. dollar and yen are pushing up component prices for handset manufacturers, while weakening currencies in emerging markets are hurting the purchasing power of consumers in Nokia's key markets. "Developed markets will fare worse and developing markets will fare better," Nokia Chief Financial Officer Rick Simonson told an investor call. Nokia said the increasingly limited availability of credit was also hurting, something analysts agreed with. "We have been hearing about operators and distributors reducing their handset stock to an absolute minimum due to a credit shortage for the past few weeks," said analyst Neil Mawston of Strategy Analytics. Nokia shares fell more than 7 percent to 9.56 euros on Thursday, their lowest since August 2004, but later recovered and closed down 3.7 percent at 9.95 euros in Helsinki. In New York, Nokia's ADRs closed 11.02 percent lower at $12.59. Kulbinder Garcha, an analyst with CSFB, said companies heavily exposed to the North American and Western European markets -- such as Motorola Inc and Sony Ericsson -- faced tough times. "The one segment of the market that will grow in 2009 is smartphones, so in the industry, Apple, HTC and RIM will outpace the others," Garcha said. BLACK CHRISTMAS Nokia now expects fourth-quarter industry volumes to be around 330 million mobile devices, down from a year ago, and well below the 346 million average forecast in a Reuters poll earlier this month. "As the dominant handset vendor, Nokia's warning bodes poorly for the entire handset industry and the supply chain as a whole," analyst Mark Sue from RBC Capital Markets, said in a research note.  Continued... View article on single page   Share: Del.icio.us Digg Mixx My Web Facebook LinkedIn     Next Article: Facebook pulls Italian neo-Nazi pages after outcry     The Great Debate For Yahoo’s Yang, news keeps getting worse Jerry Yang has worn his leadership at Yahoo like an ill-fitting coat since coming to power last year, appearing reluctant to make the dramatic restructuring moves analysts and investors have long considered vital to get Yahoo to reaccelerate its growth.  Commentary  Related News INSTANT VIEW: Nokia sees weaker market in Q4 and 2009 9:20am EST Editor's Choice Pictures Video Articles Slideshow  A selection of our best photos from the past 24 hours.  Slideshow  quake drill moon festival Congo gorillas US: Americans teetering on $14 trillion debt pile Lifestyle: Examining U.S. damage to Babylon Business: OPEC poised for deep cut to halt oil slide Most Popular on Reuters Articles Video Recommended UPDATE 1-U.S. automakers bailout outlook in doubt-senator Hamas fires long-range rockets at Israel  |  Video Obama, Clinton discussed secretary of state job  |  Video Resort plans nude "anything goes" party Medvedev: ready to respond if U.S. ends missile plan Tough new Bond girl divides fans, reignites debate  |  Video Astronauts board space shuttle for Florida launch Angelina Jolie plans "fade away" from Hollywood CORRECTED - UPDATE 3-Hillary Clinton emerges as US State Dept candidate FDIC lays out broad home loan modification plan  |  Video Most Popular Articles RSS Feed Video  The world's top bottom G20 to tackle economy Obama's defense policy The search for First Dog Talk of the Town: 007 too violent? Flying high in Mexico UN runs out of Gaza food And Finally.. In Dog We Trust. World's best bottoms Talk of the Town: Anand Jon Most Popular Videos RSS Feed pictures Slideshow  Tech watch The latest gadgets and gizmos in the world of technology.  Slideshow  Reuters Deals The global destination for corporate leaders, deal-makers and innovators Knowledge to Act Reuters.com:  Help and Contact Us  |  Advertise With Us  |  Mobile  |  Newsletters  |  RSS  |  Interactive TV  |  Labs  |  Reuters in Second Life  |  Archive  |  Site Index  |  Video Index Thomson Reuters Corporate:  Copyright  |  Disclaimer  |  Privacy  |  Professional Products  |  Professional Products Support  |  About Thomson Reuters  |  Careers   International Editions: Africa  |  Arabic  |  Argentina  |  Brazil  |  Canada  |  China  |  France  |  Germany  |  India  |  Italy  |  Japan  |  Latin America  |  Mexico  |  Russia  |  Spain  |  United Kingdom  |  United States   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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