Nokia today reported their financial revenue for third quarter of 2008 and it showed an increasing shift of customers away from Nokia’s high-end devices. Nokia shipped 117.8 million handsets in Q3, which was down 3 percent from previous quarter, but was up 5 percent in year-over-year growth. However the cellphone market grew at faster rate than Nokia’s growth rate, as a result the company’s market share dropped from 40 percent in June end to 38 percent in Q3 2008.
Nokia was worst hit in its high-end device (smartphones) segment, which the company calls “converged devices”. Overall, smartphone market saw around 40 percent year-over-year growth from 31.7 million units last summer to 44.2 million units this summer, where as, Nokia saw a drop in its smartphone shipment from 16 million to 15.5 million. Nokia’s smartphone market share dropped from 50.4 percent last year to 35 percent this year. Nokia attributed their smartphone market share loss to “tactical decision” of not lower its prices to match its competitors.
Though, Nokia didn’t mention iPhone or 5800 XperssMusic, the device they launched to compete with the iPhone, but they did mention that the company faced problems in ramping up production of an important “mid-range device” and that hurt the firm. Nokia’s N-series smartphones that is available in over 10 models and is competing with the iPhone sold only 9 million units. The business friendly E-series smartphone sold just 3.5 million units.
Nokia’s net revenue dropped 5 percent year-over-year to Euro12.24 billion and its profits fell 21 percent to Euro1.47 billion. But, Nokia assured its investors that the company would hold its market share and even try to grow it slightly in Q4 2008.
[Via Macnn]