Nokia cuts handset-sales forecast

Summary:The Finnish mobile-phone manufacturer has revised its fourth-quarter outlook, and also issued a warning over 2009 sales

Nokia has downgraded its outlook for the fourth quarter of the year, blaming a "sharp pull-back in global consumer spending".

On Friday, the Finnish communications giant said it expects to ship 330 million handsets in the quarter. Consequently, Nokia's shipments forecast for the whole of 2008 dropped from 1.26 billion units to 1.24 billion.

"As a result of the rapid change in global consumer spending, which has impacted the mobile-device market, Nokia now expects that the industry mobile-device volumes will be lower in the fourth quarter of 2008 than previously expected," the company said in a statement. Nokia also suggested it was being affected by some of its trade customers finding it hard to get credit in the current climate.

Nokia estimated that device unit shipments would be lower in 2009 than this year. The company also said that both it and Nokia Siemens Networks would see a smaller market in mobile infrastructure, fixed infrastructure and related services, in euro terms.

According to its statement, the company will next year "curtail use of external contractors, consultants and professional services", and work on further cuts to its operating expenses. Nokia said it would provide more details on its 2009 outlook in early December.

In October, Nokia's third-quarter results showed a 30 percent drop in profits, and the company subsequently announced it could be laying off hundreds of workers.

Topics: Networking


David Meyer is a freelance technology journalist. He fell into journalism when he realised his musical career wouldn't be paying many bills. His early journalistic career was spent in general news, working behind the scenes for BBC radio and on-air as a newsreader for independent stations. David's main focus is on communications, of both... Full Bio

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.