Nokia expects to lose marketshare with flat handset sales in 2010

Nokia expects to lose marketshare with flat handset sales in 2010
Considering that Nokia expects the overall handset market to show a 10% gain in sales in 2010, the Finnish manufacturer plans on losing marketshare next year. This is because the company says that it will ship about the same number of units next year as it did this year. Nokia continues to be faithful to the Symbian platform and said it will overhaul the UI on it next year. Before the middle of 2010, Nokia plans on introducing a "major product milestone" and another one before 2010 comes to an end. Another major device will be released in the second half of 2010 when the company releases its first Maemo 6 powered unit. The company said it will provide an "iconic" user experience. Just recently, Nokia launched its first Maemo 5 powered device, the N900 which has become one of the superstars of 2009 with an internet experience second to none.

Speaking to the public during its "Investor day" in Finland, the world's number one cellphone maker lost $834 million in the third quarter as Apple, RIM and other smartphone manufacturers chip away at Nokia's lead. With a 35% share of the global smartphone pie, Nokia shipped 108.5 million units in the quarter which was up from Q2, but down from the 117.8 million shipped a year ago when the company owned 41% of the smartphone market. With all of the new competition, operating margins have shrunk from 18.6% to 11.4% from the third quarter 2008 to the third quarter of 2009. The company expects margins to be between 12 and 14% next year. There is no idea when Nokia might start regaining marketshare by growing faster than the overall marketplace.

source: Bloomberg

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