ESPOO, Finland, September 5 /PRNewswire-FirstCall/ -- Nokia (NYSE: NOK)
today updated its mobile device market share outlook for the third quarter
2008. Nokia now expects its mobile device market share in the third quarter
2008 to be lower than in the second quarter 2008. This compares to Nokia's
earlier estimation provided in the second quarter results announcement on
July 17, 2008, when the company said it expected its mobile device market
share in the third quarter 2008 to be approximately at the same level
sequentially.
Nokia continues to target an increase in its market share in mobile
devices for the full year 2008.
Nokia expects the overall mobile device market in 2008 to be impacted by
the weaker consumer confidence in multiple markets. However, Nokia continues
to expect industry mobile device volumes in 2008 to grow 10% or more from the
approximately 1.14 billion units Nokia estimated for 2007. Nokia also
continues to expect industry mobile device volumes in the third quarter 2008
to be up sequentially.
Nokia's current estimate that its mobile device market share in the third
quarter 2008 will be lower than previously expected is due to multiple
factors. These factors include Nokia's tactical decision to not meet certain
aggressive pricing of some competitors, the overall market competition,
including the entry markets, and the temporary impact of a slower ramp-up of
a mid-range Nokia device. Nokia's strategy is to take market share only when
the company believes it to be sustainably profitable in the longer term.
Nokia has not broadly participated in the recent aggressive pricing activity
- as it believes that the negative impact to profitability would outweigh any
short term incremental benefits to device unit sales.
We expect the product launches and start of shipments to be on track
during the remainder of the third quarter and the fourth quarter 2008. Driven
by its new products and services, Nokia continues to believe its product
portfolio will be very attractive for the rest of the year.
Nokia will report its third quarter 2008 results on October 16, 2008.
Nokia will be hosting a conference call at 13:30 UK time (8:30 EST). The
dial-in number for media (listen only - the question and answer session will
be limited to financial analysts and investors only) is +1-706-634-5012.
Conference ID: 63476957.
The dial-in number for financial analysts and investors is US:
+1-888-636-1561 Conference ID: 63476957. UK: +44-1452-560-299. Conference ID:
63484035.
A replay of the call will be available soon after the call completion.
The replay number is US: +1-800-642-1687 or +1-706-645-9291. Conference ID:
63476957.
FORWARD-LOOKING STATEMENTS
It should be noted that certain statements herein which are not
historical facts, including, without limitation, those regarding: A) the
timing of product, services and solution deliveries; B) our ability to
develop, implement and commercialize new products, services, solutions and
technologies; C) expectations regarding market growth, developments and
structural changes; D) expectations regarding our mobile device volume
growth, market share, prices and margins; E) expectations and targets for our
results of operations; F) the outcome of pending and threatened litigation;
G) expectations regarding the successful completion of contemplated
acquisitions on a timely basis and our ability to achieve the set targets
upon the completion of such acquisitions; and H) statements preceded by
"believe," "expect," "anticipate," "foresee," "target," "estimate,"
"designed," "plans," "will" or similar expressions are forward-looking
statements. These statements are based on management's best assumptions and
beliefs in light of the information currently available to it. Because they
involve risks and uncertainties, actual results may differ materially from
the results that we currently expect. Factors that could cause these
differences include, but are not limited to: 1) competitiveness of our
product, service and solutions portfolio; 2) the extent of the growth of the
mobile communications industry and general economic conditions globally; 3)
the growth and profitability of the new market segments that we target and
our ability to successfully develop or acquire and market products, services
and solutions in those segments; 4) our ability to successfully manage costs;
5) the intensity of competition in the mobile communications industry and our
ability to maintain or improve our market position or respond successfully to
changes in the competitive landscape; 6) the impact of changes in technology
and our ability to develop or otherwise acquire complex technologies as
required by the market, with full rights needed to use; 7) timely and
successful commercialization of complex technologies as new advanced
products, services and solutions; 8) our ability to protect the complex
technologies, which we or others develop or that we license, from claims that
we have infringed third parties' intellectual property rights, as well as our
unrestricted use on commercially acceptable terms of certain technologies in
our products, services and solution offerings; 9) our ability to protect
numerous Nokia and Nokia Siemens Networks patented, standardized or
proprietary technologies from third-party infringement or actions to
invalidate the intellectual property rights of these technologies; 10) Nokia
Siemens Networks' ability to achieve the expected benefits and synergies from
its formation to the extent and within the time period anticipated and to
successfully integrate its operations, personnel and supporting activities;
11) whether, as a result of investigations into alleged violations of law by
some current or former employees of Siemens AG ("Siemens"), government
authorities or others take further actions against Siemens and/or its
employees that may involve and affect the carrier-related assets and
employees transferred by Siemens to Nokia Siemens Networks, or there may be
undetected additional violations that may have occurred prior to the
transfer, or ongoing violations that may have occurred after the transfer, of
such assets and employees that could result in additional actions by
government authorities; 12) any impairment of Nokia Siemens Networks customer
relationships resulting from the ongoing government investigations involving
the Siemens carrier-related operations transferred to Nokia Siemens Networks;
13) occurrence of any actual or even alleged defects or other quality issues
in our products, services and solutions; 14) our ability to manage
efficiently our manufacturing and logistics, as well as to ensure the
quality, safety, security and timely delivery of our products, services and
solutions; 15) inventory management risks resulting from shifts in market
demand; 16) our ability to source sufficient amounts of fully functional
components and sub-assemblies without interruption and at acceptable prices;
17) any disruption to information technology systems and networks that our
operations rely on; 18) developments under large, multi-year contracts or in
relation to major customers; 19) economic or political turmoil in emerging
market countries where we do business; 20) our success in collaboration
arrangements relating to development of technologies or new products,
services and solutions; 21) the success, financial condition and performance
of our collaboration partners, suppliers and customers; 22) exchange rate
fluctuations, including, in particular, fluctuations between the euro, which
is our reporting currency, and the US dollar, the Chinese yuan, the UK pound
sterling and the Japanese yen, as well as certain other currencies; 23) the
management of our customer financing exposure; 24) allegations of possible
health risks from electromagnetic fields generated by base stations and
mobile devices and lawsuits related to them, regardless of merit; 25)
unfavorable outcome of litigations; 26) our ability to recruit, retain and
develop appropriately skilled employees; 27) the impact of changes in
government policies, laws or regulations; and 28) our ability to effectively
and smoothly implement our new organizational structure; as well as the risk
factors specified on pages 10-25 of Nokia's annual report on Form 20-F for
the year ended December 31, 2007 under "Item 3.D Risk Factors." Other unknown
or unpredictable factors or underlying assumptions subsequently proving to be
incorrect could cause actual results to differ materially from those in the
forward-looking statements. Nokia does not undertake any obligation to update
publicly or revise forward-looking statements, whether as a result of new
information, future events or otherwise, except to the extent legally
required.
http://www.nokia.com
SOURCE Nokia Corporation
