Nokia Again Cuts Mobile Industry Forecast

The mobile phone maker also said it couldn't confirm its market share estimates for the fourth quarter.
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Mobile phone maker

Nokia

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said Thursday it now estimates that fourth-quarter industry mobile device volumes will be lower than its previous estimate of about 330 million units.

The Finnish company said there is "insufficient visibility" in the market toconfirm prior estimates that its fourth-quarter market share will remain at the same level or slightly higher from an estimated 38% in the third quarter.

Nokia said it targets an increase in its market share in mobile devices in 2009 from 2008, including increased share in smartphones.

"Nokia's highly variable, low fixed-cost business model allows us to scale to a declining market," said Chief Financial Officer Rick Simonson in a statement Thursday. "We are also acting on all fronts to reduce our costs beyond what may be attributable solely to the scalable aspects of the business model -- moving to reduce cost of goods sold even further, reduce operational expenditure appropriately, and scale back capital expenditure. We expect these strong actions to offset, in part, the negative impact of slowing sales."

Nokia said the market slowdown in mobile devices has continued more rapidly than previously expected since it issued an update in mid-November. Nokia said the mobile device industry continues to be impacted by a global pullback in spending, currency volatility, and decreased availability of credit.