A harsh greeting for Nokia investors attending its capital markets roadshow in Brooklyn today: Nokia sent out a press release early this morning to the effect of: “Remember how bad we told you it was going to get a month ago? It’s getting worse, fast.”
Nokia: “The mobile device market slowdown has continued more rapidly than previously expected since Nokia issued an update on November 14, 2008. The industry continues to be impacted by the effects of a global consumer pull-back in spending, currency volatility, and decreased availability of credit. Nokia believes the slowdown is apparent in varying degrees across all markets, while the most recent incremental impact in the emerging markets has been more pronounced than in other markets.”
As a result, Nokia think that Q4 mobile phone industry shipments will be lower than its previous estimate of 330 million units. Nokia also doesn’t have enough “visibility” into the market to confirm its market share estimate, “which was expected to be at the same level or slightly up from an estimated 38% in the third quarter 2008.” Also:
- Nokia expects 2009 industry shipments to decline 5% or more from this year.
- Nokia thinks it will increase its market share next year, “including increased share in smartphones.”
- But it expects margins in the teens. As AmTech notes today, “This is below our expected 15-20% outlook and well below NOK’s normal 20% +/-.”