Even though they may still hold the #1 position in the world, it doesn’t mean that Nokia is immune to the effects of the current economic situation.
As proof of this, they’ve just posted their earnings for the last quarter of 2008, and it’s probably their worst performance since the company began. Sales were down by 19.5% (€12.67 billion from €15.7 billion) while their devices business fell a whopping 26.9% (€8.14 billion from €11.4 billion) as compared to the same period a year ago. As a consequence, the mobile phone giant has changed their expectation of just a 5% drop in sales to a more significant 10% for this year. This isn’t the first time Nokia has changed their outlook as they did the same thing last year, and with the way things are going, this might just now happen on a quarterly basis.
The good thing about the whole situation though, if you can call it that, is that everyone is finding themselves in the same situation which means that Nokia’s dominance in the market will hardly be affected. As other rivals like Motorola stumble along the way, companies like Samsung, LG and even Nokia stand to gain from the loss, but thanks to the Finnish company’s huge lead in the market, Nokia is still untouchable at the moment.
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