Nokia lowers its third quarter 2008 mobile device market share outlook

Nokia today revised 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.

MacDailyNews Take: “Nokia Chief Executive Olli-Pekka Kallasvuo brushed off suggestions that Nokia needs to do more to fight back the foray of iPhone onto its home turf, calling it a ‘niche product.'” – Dow Jones Newswires, April 17, 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’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.

MacDailyNews Take: “Nokia’s senior vice-president of devices, Søren Petersen dismissed the iPhone’s security and business features as ‘not worthy of discussion.'” – The Financial Times, August 13, 2008

Nokia will report its third quarter 2008 results on October 16, 2008.

MacDailyNews Take: Bloodbath.

20 Comments

  1. In my opinion, Nokia has produced nothing but crap since the late ’90s. They chose to produce low price, low margin devices and dumped them on everyone. Now, they claim that they have decided to “not meet certain aggressie pricing of some competitors”? Maybe because there isn’t any more margins to cut!

  2. This isn’t Apple’s market and I don’t think, as some do, that they’re going to produce a cheaper ‘iPhone nano’ and try to enter it. Although I could be wrong.

    I think that Nokia’s decision not to get involved in a cut-price rat race – as Dell and HP have done – is a good one.

  3. @ Søren Petersen

    iPhones security and business features AREN’T worth talking about. That kind of time costs time/money and your blonde Nordic hair is catching fire.

  4. In other words, ‘we could not compete even if we were giving them away, so we chose to do nothing. Our iPhone knock-off is taking us longer to produce then we planed, which is a good thing cause no one is lining up to buy it. We’ll maintain our course and continue to loose market share for at least the next 18 quarters most likely longer then that.

  5. Good take MDN.

    Regarding Android, I think it’s overhyped. The fact that there is no “minimum” hardware standard, combined with the idea that the carriers will have full control over what is allowed on the device makes Android seem DOA. How “open” is Android going to be when the carriers and handset manufacturers have full control over what features are included? This is another Microsoft vs. Apple type battle. Android will have the “openness” of a PC (and all the baggage that comes with it like infinite hardware combinations and legacy support) while iPhone will have tight hardware and software control/integration (and all the usability and sleekness that comes with it).

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