Price cutting rivals eat into Nokia's market share
Shares fall sharply on falling market share
Nokia has signalled an end to its uninterrupted growth, predicting that its market share would shrink, slightly, during the current quarter - though it will of course still increase over the whole year.
Nokia reckons its misfortune is down to competitors cutting prices beyond what's sustainable, in an attempt to grab market share, and that it'll bounce back towards the end of 2008:
"Nokia has not broadly participated in recent aggressive pricing activity as it believes that the negative impact to profitability would outweigh any short term incremental benefits to device unit sales," the company said in a statement.
This means lower profit figures for the third quarter - July to September - and the company's assertions that everything would be fine by the end of 2008 didn't stop the share price sinking by more than ten per cent on the news. It's slid to €13.93, the lowest since November 2005, according to the FT. ®