The result of the world’s largest mobile phone manufacturer Nokia is anticipated to have weakened significantly during the last quarter of 2008. According to the average forecast in a Reuters poll of 35 analysts Nokia is expected to report fourth-quarter earnings per share of between 0.24 and 0.30 euros.
At the same time last year the result per share excluding one-off charges was 0.47 euros. The figures are not totally comparable, because Nokia has made changes to its result-reporting practice. The analysts estimate the company’s net sales having decreased during the last quarter of the year by nearly EUR 2.5 billion.
The main reason for the weakened result is believed to be the diminished demand for mobile phones caused by the ongoing economic crisis.
Market research company Strategy Analytics estimates that end-of-year mobile handset sales fell by eight per cent compared to a year earlier. Strategy Analytics calculates that Nokia sold 120 million mobile phones, which is ten per cent less than in October-December 2007.
The share of the lower-end models in the total sales has continued to grow. From Nokia’s point of view this is a good thing, for in handset sales Nokia’s superiority is at its greatest at the low-priced end of the market.
The analysts set the average selling price for the Finnish giant's phones for the fourth quarter of 2008 at EUR 72.00, which is the same as in Q3.
At the end of 2007 the average price was 11 euros higher.
Among the larger players in the handset market, the sharpest decrease in sales was experienced by Motorola and Sony Ericsson, who are both suffering from economic difficulties.
Strategy Analytics estimates on the other hand that the South Korean Samsung’s handset sales may have increased by as much as 20 per cent compared to Q4 in 2007.
Nokia will make public its result for Q4 and the full year on Thursday.
