Nokia predicts 5% fall in handset sales

Nokia is forecasting a fall in handset sales next year. It expects production to shrink by up to 5% as consumers continue to cut spending.

The manufacturer says it is beginning to feel the pinch from slowing economies in Europe and the US, but is experiencing booming demand from emerging markets in Asia and Africa. However, this is beginning to change and the company is preparing for the worst.

Nokia president and chief executive Olli-Pekka Kallasvuo says: “2009 will be challenging for our industry, however we have a strong, enviable base to build on and I believe we will continue to strengthen our position on many fronts.

“Building on our operational flexibility, Nokia is acting to reduce costs appropriately in the current slowing environment. At the same time, we remain fully committed to making the investments to build the future of our exciting industry and Nokia’s continued competitiveness.”

Last month the company said it would axe up to 450 sales and marketing jobs as part of a reorganisation of the business.

The announcement came as Nokia reported its third quarter 2008 net sales across Europe decreased 5% to €12.2bn (£10.5bn), compared with €12.9bn (£11.1bn) in the same period last year.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here