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Nokia sees 2010 handset industry volumes up 10%

Finland' s Nokia said it expects handset industry volumes to rise 10% in 2010 from 2009 as market conditions improve and said it would focus on stabilizing the average selling price of its handsets to increase revenue.

"Going into 2010, the overall mobile devices market is stabilizing and it is growing more in the areas where Nokia has competitive advantages," Chief Financial Officer Timo Ihamuotila said.

Nokia said it expects to maintain its share of the mobile device market in volume terms in 2010, compared with 2009, but will target increased revenue by concentrating on stabilizing its average selling price, or ASP. Nokia said in October its ASP was EUR62, stable from the previous quarter but down from EUR72 in the third quarter of 2008.

Nokia had a market share of around 38% in volume terms in the third quarter, unchanged from the second quarter of 2009.

The mobile phone industry has suffered from several quarters of falling sales as consumers have reined in spending in the wake of the economic downturn. Still, research firm Gartner Inc. said in October it expects the handset market to return to year-on-year growth in the fourth quarter 2009 as the recession comes to an end.

However, Nokia has faced intense competition from Apple Inc.'s iPhone, touch screen phones from South Korea's Samsung Electronics, and a growing number of devices based on Google Inc.'s Android operating system. Nokia's market share has remained relatively flat even as it has been launching new phones such as the N97 smartphone and the open source Maemo-based N900 device.

Still, the company said Wednesday it had made significant improvements to the next version of the Symbian user interface. Nokia Chief Executive Olli-Pekka Kallasvuo said Symbian "has reach and flexibility like no other platform, and we have measures in place to push smartphones down to new price points globally, while growing margins."

Espoo, Finland-based Nokia said it expects non-IFRS operating margin, which differs somewhat from the reported number, for its Devices & Services business to be 12% to 14% in 2010, up slightly from 11.4% in the third quarter 2009.

In October's third-quarter report, Nokia reported a worse-than-expected EUR559 million net loss due to falling sales and a EUR908 million goodwill write-down on network equipment maker Nokia Siemens Networks, which has suffered from weak market conditions and tough competition.

Nokia Siemens Networks, Nokia's joint venture with Germany's Siemens AG, is expected to gain market share in 2010 from 2009, while the infrastructure market is expected to be flat in euro terms from the previous year, Nokia said Wednesday.

Nokia said it will continue to focus on applications for its phones, targeting net sales from its Services unit of EUR2 billion or more in 2011 from an expected 300 million active users by the end of 2011.

The company has increasingly turned its focus to services for the users of its mobile phones, such as navigation applications, its "Comes With Music" offering, and the Ovi online portal.

In August, it announced the establishment of a Solutions unit that will work to align its services with its mobile devices.

Nokia last week said it would cut a number of R&D jobs in Japan, Finland and Denmark because it aims to reduce the number of phones launched each year.

At 1157 GMT, shares in Nokia were down 1% at EUR8.82, while the wider market in Helsinki was unchanged.

Источник: Total Telecom

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