Nokia expects the cellphone industry grows
Nokia, the world’s biggest cellphone maker, reported mostly in-line Q2 results this morning and brightened its industry forecast. Shares should trade up today; they’re already up 8.2% in pre-market trading to $27.19.Nokia (NOK) now expects the cellphone industry to grow by 10% “or more” this year from the 1.14 billion units shipped last year; this is better than the “10%” forecast it had been giving most of the year — and a welcomed sign of improvement after many of Nokia’s rivals have recently offered gloomy forecasts. Nokia also “continues to target an increase” in cellphone market share this year, but expects it to be flat q/q in Q3, around 40%. Source
As long as smartphone inustry is improving Nokia is gaining only few bucks. Analysts believe that In most parts of the mobile industry, Nokia (NOK) is the player to beat: It’s the dominant player for cheap phones, simple phones, Europe, emerging markets, etc., Which is why it boasts 40% market share. One area where it’s becoming less feared: The high-end smartphone market, where Research In Motion (RIMM) and Apple (AAPL) have established themselves as worthy competitors, and Nokia (NOK) will probably lose ground.
