Nokia scales back prediction for global mobile phone sales

November 14, 2008

Mobile telephone company Nokia, the world's largest manufacturer of mobile telephones, based in Finland, has today lowered its forecasts for the number of mobile handsets to be sold in 2008 by 1.5%, due to the current economic crisis.

It lowered its forecast for the total number of mobile phones to be sold in 2008 to 1.24 billion, down from 1.26 billion. Nokia also stated that it's "preliminary estimate is that the industry mobile device volumes will be down in 2009 compared to 2008, impacted by the continuing overall economic slowdown."

"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," stated Nokia, explaining it's reasons behind it's move. "The weaker consumer spending has impacted many industries, including the global mobile device market. The mobile device market has also been negatively impacted by the more limited availability of credit, which has limited the purchasing ability of some of our trade customers."

Nokia's share price has fallen on the announcement of this news. The company opened today trading at US$12.43. It has since fallen to a low of $12.22, although it has now recovered.

The company plans to reveal more details on its 2009 forecasts at its "Capital Markets Day" in New York on December 4.