Nokia under stress....

Nokia, the global market leader in mobile phones, yesterday posted its Q4 and FY08 earnings showing a massive 69 percent drop in Q4 profits matched mobile device volumes down to 133.1 million units, representing a 15 percent drop year on year.

The main geographic areas hit most were Middle East & Africa (-22.9 percent), Greater China (-36.1 percent), North America (-19.6 percent).

Net profit from October to December 2008 was €576 million, down from €1,835 during the same period the previous year.

“In recent weeks, the macroeconomic environment has deteriorated rapidly, with even weaker consumer confidence, unprecedented currency volatility and credit tightness continuing to impact the mobile communications industry,” said Nokia CEO Olli-Pekka Kallasvuo.

Nokia expects industry mobile device volumes in the first quarter of 2009 to decline sequentially to a greater extent. The company estimates its market share for Q4 2008 was 37 percent, compared with 40 percent Q4 2007 and 38 percent in Q3 2008. The average mobile device selling price (ASP) in Q4 2008 has declined drastically to that of Q4 2007.

Nevertheless, the company exhibits a strong confidence & that they will continue to believe that Nokia is best placed to deal with the current market conditions....