NOKIA Predicted  Global Mobile Phone Sale  Would Grow Close To 10%

The world’s biggest mobile phone manufacturer Nokia, predicted  that global sales of mobile phones would grow close to 10 percent in volume next year after falling some 7 percent this year.

The Finnish company said at its capital markets day in Helsinki.”Nokia expects industry mobile phone device volumes to be up about 10 percent in 2010, compared to 2009. Smartphone growth will be significantly higher.

The value of its market share in terms of euros would grow slightly, While the company expected its share of the overall market to be flat next year.

Mobile Phone Sales

In mid-October Nokia reported its first loss in a decade amid rising rivalry in the smartphone market from Blackberry-maker RIM and iPhone-maker Apple, in addition of  problems with its Nokia Siemens Networks joint venture.

Nokia’s third quarter net loss was 559 million euros (844 million US dollars). The group has announced more than 4,200 job cuts, including 1,300 voluntary departures, as part of a recovery programme launched in January.

Among the global financial crisis many users have cut back on spending, which has also dented sales of mobile phones. Nokia has approximated that around 1.12 billion mobile devices will be sold in the world this year, which is around 7 percent less than last year.

But NOKIA predicted the total market was now stabilising. Nokia said it aimed next year to increase profitability and forecast the operating margin in its Devices and Services unit would increase from 12 percent this year to 14 percent in 2010. It also plans to cut research and development costs in the unit and has in recent weeks announced that it will cut some 550 R&D jobs.

“I believe Nokia is in better shape than our rivals. I mean that our challenges are clear but so is our direction, chief executive Olli-Pekka Kallasvuo told investors and reporters.

Nokia said it would continue to target all price ranges in all markets to reach varied customer groups, but would also streamline its smartphone portfolio next year.

Mobile phone observers have said Nokia’s outdated Symbian operating system, driving its smartphones, is one of the reasons why many consumers choose RIM’s Blackberry or Apple’s iPhone , which are really user friendly.

Last month Nokia started to sell its N900 device  using the Linux-based Maemo platform  and it has received good acceptance from NOKIA users.  But the Symbian platform will continue to be the biggest platform going forward.”In 2010 you will see a new version of Symbian to be released,” Kallasvuo noted.

Source  AFP