The Finnish mobile phone manufacturer has downgraded its forecast from an expectation of growth after reporting a 25% drop in net sales to €9.9bn (£8.5bn) as “demand in the overall mobile device market appears to be bottoming out.”
As a result the company is “accelerating its strategic transformation” into an integrated device and services “solutions” operator to net future growth, says chief executive Olla-Pekka Kallasvuo.
“We are balancing short-term priorities with our longer-term growth ambitions as elements of the mobile handset, PC, internet and media industries converge to form a new industry,” he says.
Nokia has come under increased competition from the likes of Apple in recent times for smarter, more innovative internet and media enabled handsets.
Overall handset demand is falling, however, and Nokia predicts a 10% fall in volumes as a whole in 2009 compared to 2008.