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Thu 16 Oct 2008 04:00 PM

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Nokia’s market share continues to fall

Net sales down in Middle East and Africa

Nokia’s share of the global handset market continued to fall over the last month, with declining net sales in the Middle East and Africa adding to the handset manufacturer’s woes.

In a statement released today, Nokia said its third quarter market share stood at 38 percent, compared with 39 percent during the same period last year, and 40 percent in the second quarter of this year.

“Our year-on-year market share decline was driven primarily by lower market share in the Middle East and Africa, Greater China, North America and Europe,” the statement said.

“Net sales were down year-on-year in North America, Europe, and to a lesser extent in Asia-Pacific and the Middle East and Africa,” it continued.

Third quarter net sales fell 7 percent, to US$11.6 billion, compared with $9.2 billion in the third quarter of 2007.

The decline was blamed on Nokia’s decision “not to meet certain aggressive pricing of some competitors, the overall market competition…and the temporary impact of a slower ramp-up of a mid-range Nokia device in the third quarter of 2008.”

Despite Nokia’s claim to have not involved itself in a handset price war, the average selling price of its devices continued to fall, from US$99 during the second quarter of 2008 to $97 during the last quarter. The drop was blamed partially on currency fluctuations.

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