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Nokia revises device market outlook to include fakes

Nokia revised its global mobile device market outlook to include shipments of counterfeit and unlicensed handsets.

In a filing with the U.S. Securities and Exchange Commission (SEC), the world's biggest phone maker raised its estimate for the total number of devices shipped globally during 2009 to 1.26 billion from 1.14 billion.

Nokia also adjusted down its 2009 market share prediction to 34% from 38%.

The Finland-based company said the adjustments were prompted by improvements in its measurement processes and tools, giving it better market visibility.

"Beginning in 2010, Nokia is revising its definition of the industry mobile device market that it uses to estimate industry volumes," said Nokia, in its SEC filing.

This means the handset vendor will recognise the volumes shipped by certain 'new entrants' to the handset market.

"These include vendors of legitimate, as well as unlicensed and counterfeit, products with manufacturing facilities primarily centred around certain locations in Asia and other emerging markets," said Nokia, in its SEC filing.

Research firm iSuppli in November 2009 predicted shipments of unlicensed and counterfeit phones – known as 'grey-market' phones – reached 145 million in China alone, an increase of 43.6 % from 2008.

It expects grey-market phone shipments in China to peak at 192 million units by 2012.

"International consumers in both developed and developing economies are being lured away from established brands by the low cost of grey-market handsets," said Kevin Wang, director of China research at iSuppli, at the time.

Meanwhile using its new methodology Nokia said it now expects global 2010 device volumes to grow by 10% compared with 2009.

Nokia also predicted that its share of total phone shipments will remain flat this year; although it aims to increase its share of global handset revenues during 2010.

iSuppli in a separate report in February found that Nokia was once again the market leader in 2009, with an operating margin of 12.3%, comfortably above the average of 0.7% for the world's top five phone makers.

Источник: Total Telecom

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