Nokia maintains confidence in handset sales growth

12 Jun 2003

Contrary to analyst predictions, leading global phone vendor Nokia [NYSE: NOK] has stuck to its full-year global handset market growth forecast, claiming that around 450 million units will be sold in 2003. Slowing sales, particularly in its core European market, led to a trimming of its second quarter growth forecast to around 4%, but the Finnish giant expects this to be counteracted by a strong second half that will level out at 10% growth over the twelve months. Nokia also reiterated its intent to lead the 3G handset sector by predicting its current 30% market share will jump to 35% by year end. However, expectations remain low at the company’s loss-making Networks unit, which anticipates that its market will fall by at least 15% in 2003. Nokia raised its outlook for global mobile subscribers, upping its previous estimation that there will be 1.5 billion users by 2005 by a further 100 million. There are currently around one billion cellular subscribers worldwide.