December 5, 2016
Nokia has warned that mobile phone sales are falling faster than expected as consumers brace themselves for the oncoming recession.
The world’s biggest mobile phone maker yesterday cut its global handset sales forecast for the second time in less than a month, and for the third time in three months.
On 14th November Nokia predicted handset sales for the fourth quarter of 330 million units, and full year sales of 1.24 billion units.
In yesterday’s announcement, the company warned that sales will fall below this estimate.
Nokia’s outlook for next year is equally gloomy, with predictions of a 5% decline in handset sales.
This will be the first negative growth in the sector for eight years. In every year other than 2001, mobile phone sales have seen a growth rate of at least 10%.
Despite the projected fall in sales, Nokia expects its market share to increase during 2017.
Market analysts, however, are concerned that Nokia’s projections could be too optimistic, with even Nokia admitting ‘insufficient visibility’ for accurate predictions about next year’s market.
Shares in Nokia rose 4% to €11.06 following the announcement.