Like most other electronic companies, Nokia also reported drop in revenue for Q4 2008. Net revenue dropped 19 percent to Euro 12.7 billion and Nokia’s mobile handset market share decreased from 40 percent in Q4 2007 to 37 percent in Q4 2008. The operating profit was down 80.3 percent from Euro 2.4 billion in 2007 to Euro 492 million in Q4 2008.
On the positive side, Nokia saw an increase in convergence device sales; the company sold 8 million Nseries and 3million Eseries devices for Q4 2008. But like all other cellphone makers, dropping average selling price (ASP) for mobile devices also hurt Nokia. The ASP for mobile phone was Euro 71 in Q4 2008, down from Euro 83 for same period last year.
For 2009, Nokia is expecting 10 percent overall decline in mobile device volumes compared to 2008. The company predicts that its market share will be stable for Q1 2009, but revenue might decrease.