Tuesday, December 06, 2005

Nokia's Kallasvuo talks stock price up

Olli-Pekka Kallasvuo from Nokia said in New York investor relations meeting that Nokia’s mobile phone sales would see continued growth while profit margins would remain stable. This and other improvements that Nokia has been able to pull through this year resulted into hefty stock price increase. Nokia stock price is now on its highest level in almost two years.

It was very interesting to notice that Nokia thinks that there will be over three billion mobile phone users by 2008 already. This growth has mostly come from developing markets in India, China, Russia and Brazil. Nokia has been doing exceptionally well on these markets.

Kallasvuo also expects Nokia to increase its market share during the coming year. New phenomenon on mobile market is the death of smaller mobile terminal manufacturers. According to Kallasvuo, it is imperative that companies gain the critical mass, in order to gain benefits of the scale. Companies with less than 15 percent market share will find it increasingly difficult to operate on the mobile market. Therefore three names seem to rise above others – Nokia, Motorola and Samsung.

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