Following the release of Q1 sales totals, Finnish mobile phone giant Nokia yesterday slashed its growth forecasts for 2002, knocking confidence in the telecoms market and causing its shares to plummet. Recently renewed optimism, brought about in part by Motorola’s reassurance that it was on target to attain positive growth this year, was reversed as telecoms shares including Ericsson, Motorola and Alcatel fell.
Nokia has downgraded its forecasts for global handset sales this year to 400-420 million from a previous estimate of 420-440 million and that total mobile services and equipment sales growth would be 4-9% for 2002 as opposed to previous estimates of 15% growth.
Nokia said: “As the mobile multimedia products and services market prepares to take off, the industry remains in transition. The speed of this transition has been slower than was anticipated earlier this year, which has led the company to revisit its annual growth outlook in both the networks and the handset markets.”
Nokia’s Q1 sales fell in line with expectations, 12% down on last year causing a fall in net profits of E131 million, a result described by chairman Jorma Ollila as ‘solid’.
Shares in Nokia fell fell by 9% yesterday following the announcement.
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