Nokia Reports 4th Quarter Losses

Author JoeDigital

Nokia Corp. reported fourth-quarter sales were off by around 19% from last year. The company sold fewer phones, and further complications came fom a loss in overall marketshare, as the company reported on Thursday.

Sales for the last three months of 2008 totaled $17.9 billion U.S. as of Dec. 31, the last day of the period reported, which was nearly one-fifth lower than analysts had expected.

First and foremost, the consumer electronics company blames a worsening economy, but acknowledges that blame doesnt’ solve the problem or keep employees working. With profits off by nearly 50% over the same period a year ago, Nokia is being forced to consider reducing staff and other strategic busines smoves to balance the scales.

The drop in volume reflects not only the current economic climate but also Nokia’s relative weakness in high-end phones for markets such as Western Europe, according to Milanesi. Nokia now estimates its market share at 37%, down from 38% in the third quarter and 40% in the fourth quarter of 2007.

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