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.