Nokia market share plunges by more than 10% (Finland)
Stiff competition among the rivals, weak world economy and a weak handset portfolio are few factors responsible for drop in Nokia shares. According to the statistics, Nokia shares dipped by more than 10%. The company said that they expected weaker consumer confidence to affect the overall market for mobile phones. It said other reasons for the fall included its reluctance to match some aggressive price cuts from rivals, and a slow ramp-up of mid-range phones. AdvertisementNokia said it expected to lose market share in the third quarter, having previously forecast its market share would remain at 40%, as it was in the second quarter of the year.
According to Nokia, it 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. It is anticipated that the mobile device volumes throughout to grow 10% or more from the approximately 1.14 billion units it estimated for 2007.
