Nokia said the slowing global economy will cause its fourth quarter 2008 and full-year 2009 financial outlook to be weaker than previously expected.
“In the last few weeks, the global economic slowdown, combined with unprecedented currency volatility, has resulted in a sharp pull back in global consumer spending. The weaker consumer spending has impacted many industries, including the global mobile device market. The mobile device market has also been negatively impacted by the more limited availability of credit, which has limited the purchasing ability of some of our trade customers,” the Finnish manufacturer and world handset leader announced.
Nokia expects to sell 330 million phones this quarter, up from 310 million in the third quarter but down to 1.24 billion for 2008 overall. The previously cited expectation was 1.26 billion, although it’s still up from 1.14 billion in 2007.
Nokia also expects a downturn in its infrastructure and services markets. The company now is focusing on cutting its costs by hiring fewer contractors although there was no mention of layoffs beyond the 580 announced earlier this month. There is also a renewed focus on business customers.
More details will be announced on Dec. 4, with the final Q4 and 2008 results due Jan. 22, 2009.