by Asgeir Hoem in Issue 7: Turmoil (18 April 2009)
Nokia, with its 120 000 employees in 120 countries and a record market share of $40 in late 2007, has painted the economical downturn in its numbers for the first quarter. Destocking by operators and distributors has lead to 19% fewer devices shipped, and profits dropped by 90% in Q1 2009. The Finnish communications giant’s net income is down to 122 million euros, from 1.2 billion for the same period last year.
This is only a month after they annouced 1,700 layoffs worldwide, and another 1,000 employees accepting a voluntary pensioner offer. Nokia maintains an estimate that the mobile phone market will shrink by 10% this year. Gaining a bigger market share is one way to compensate, and chief executive Olli-Pekka Kallasvuo is optimistic: “The global economy as a whole remains weak and we are planning our business accordingly. (…) I believe the current environment favors Nokia. Our position of strength allows us to maintain our strategic objectives.”
