Global Insight telecoms analyst, Seth Wallis-Jones, stated that handset sales, which had been rising inexorably, are expected to drop in 2009 as a number of influences that have already slowed the market combine with the global economic slowdown.
Wallis-Jones commented that Nokia is recognising that economic factors will impact on the business and has highlighted the moves it has already made to limit the impact, while noting that further cost cutting may be implemented.
Cutbacks are hitting the handset industry as consumers faced with economic uncertainty rein in spending and carriers cut demand forecasts, creating an immediate hit in the fourth quarter. The actual impact of the slowdown has yet to be determined in terms of the product mix, with the slew of high end handsets, an area in which Nokia has limited its presence, complete.