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Mobilizing the Business and Business of Mobile

Nokia expects lower Q3 shipments

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Nokia today announced that it was lowering its estimate for mobile device shipments for 3rd quarter. In July, Nokia had announced that Q3 shipments will be on par with Q2. In Q2, Nokia shipped 122m units according to IDC

According to Nokia, the overall market demand for mobile devices will be tempered due to weaker consumer confidence in several markets. Although, it still believes that the market will grow by 10% in 2008.

Nokia cites several reasons for why it is lowering its forecast including:

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.

It will be interesting to see whether this downward revision is announced by other device vendors or is it isolated only to Nokia.


Written by dvdand

September 5, 2008 at 6:59 am

Posted in Handsets, Nokia

Tagged with , ,

One Response

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  1. […] This is pretty much in line with what other research companies have recently reported and also what Nokia said in its forecast for Q3. Here is the breakup of sales according to […]

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