HELSINKI, Finland - Nokia Corp., the world's largest cell phone maker, on Friday downgraded its outlook for industrywide mobile device volumes for the fourth quarter, citing pressure from the economic crisis and currency volatility.
It also announced it planned further cost cuts in 2009 "to respond appropriately to the market conditions," but said it would provide more details on Dec. 4 when it hosts its capital markets day in New York.
The Finnish company warned in a statement that the rapid changes in consumer spending are likely to hit the mobile device market.
It now expects industry mobile device volumes in the fourth quarter to come in below previous forecasts, to around 330 million in the fourth quarter and 1.24 billion for the year. It had earlier forecast 1.26 billion units for the year.
Despite the expected drop in industry volumes, Nokia said it still expects its market share to be at the same level or slightly up in the fourth quarter compared with the third quarter.
In its preliminary outlook for 2009, it also said it expects industry mobile device volumes to be lower than in 2008, mainly because of the overall economic slowdown.
In the Nokia and Siemens joint venture, Nokia Siemens Networks, preliminary estimates indicate that the markets for mobile infrastructure, fixed infrastructure and related services will be down next year compared with 2008, the company said.
Nokia Chief Executive Olli-Pekka Kallasvuo said his company "believes that its advantages of scale, leading brand, superior logistics, low cost and broad product portfolio are competitive advantages that will enable us to distinguish ourselves from the competition in a challenging 2009."
The Nokia share fell more than 5 percent to 9.80 euros ($12.24) on the Helsinki stock exchange after the announcement.