Nokia's Shares Drop after Pessimistic Forecast

by Jordan Yerman | September 5, 2008 at 07:41 am

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Nokia predicts lower sales volume in the upcoming quarter. This is not too surprising, since Nokia's handsets are either entry-level (missing things like bluetooth or even a camera) or insanely high-end (and costing more than a laptop). Even grey-market phones in this category are more than five hundred bucks... or so I'm told.

In July the company, the world's top cell phone maker, had predicted that its market share would about the same in the two quarters - about 40 percent.

Nokia said it was losing share because of its "tactical decision" not to match the aggressive price cuts of some of its competitors, seeking instead to be "sustainably profitable in the longer term." It also cited tough competition in emerging markets and a slow "ramp-up of a mid-range Nokia device."

Nokia's U.S. shares were down $2.24 at $20.07 in morning trading.

Nokia was upbeat about the rest of 2008, saying it still aimed to increase its market share for the year.