Chris Cantell Discusses Technologies: Nokia shares fell
by Livia Cseresova
Nokia is one of the most popular cell phone makers in the world. It is especially famous in Finland. And exactly there, the shares in the corporation fell on Friday. The fall came after Nokia, the leading phone maker, announced its third-quarter global market share will be lower than its second-quarter was because of forceful price cuts by its rivals.
Nokia corp. predicted in July, that its market share in next quarter would be approximately as much as it was in the two quarters, which is about 40 percent.
According to the company, the loosing shares were caused by its tactical decision not to match the aggressive price cuts of some of its competitors, but instead trying to be profitable in the longer term.
In Helsinki, the shares of Nokia fell 9.5 percent in trading and the United States the shares decreased by $1.69, which is 7.6 percent to $20.62.
As for the rest of the year 2008, Nokia was optimistic and said that it still aimed to increase its market share for the year. Even if we combine its three main rivals, Nokia sells more cell phones already.
The share price of the company, though, fell by 40 percent this year in the middle of the concerns that the mobile industry will suffer as the credit crunch and inflation significantly influenced the economic growth and the spending power of consumers.
The average selling price of Nokia handsets also continued to fall. The reasons are the higher volumes of cheaper phones sold in emerging markets and a negative impact of the weak dollar.
The average price for a Nokia cell phone in the second quarter was 74 euros ($107). In the first quarter it was 79 euros and in the second quarter of 2007 it was 90 euros.
PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.<br><br><font size=2>These news are original content from young talents around the world and are selected for you by Chris Cantell.</font><br>
edited by Beata Biskova
Nokia corp. predicted in July, that its market share in next quarter would be approximately as much as it was in the two quarters, which is about 40 percent.
According to the company, the loosing shares were caused by its tactical decision not to match the aggressive price cuts of some of its competitors, but instead trying to be profitable in the longer term.
In Helsinki, the shares of Nokia fell 9.5 percent in trading and the United States the shares decreased by $1.69, which is 7.6 percent to $20.62.
As for the rest of the year 2008, Nokia was optimistic and said that it still aimed to increase its market share for the year. Even if we combine its three main rivals, Nokia sells more cell phones already.
The share price of the company, though, fell by 40 percent this year in the middle of the concerns that the mobile industry will suffer as the credit crunch and inflation significantly influenced the economic growth and the spending power of consumers.
The average selling price of Nokia handsets also continued to fall. The reasons are the higher volumes of cheaper phones sold in emerging markets and a negative impact of the weak dollar.
The average price for a Nokia cell phone in the second quarter was 74 euros ($107). In the first quarter it was 79 euros and in the second quarter of 2007 it was 90 euros.
| by Livia Cseresova for PocketNews (http://pocketnews.tv) |
PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.<br><br><font size=2>These news are original content from young talents around the world and are selected for you by Chris Cantell.</font><br>
edited by Beata Biskova
Labels: CantellTV, Chris Cantell, Christopher Cantell, digital broadcasting, SigEx Foundry, SigEx Telecom, Technologies
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1:43 AM
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