The world's largest maker of mobile phones, Finnish-based Nokia, said Thursday it was "unclear" how the ongoing financial turmoil will impact different markets, according to dpa. Nokia on Thursday reported that its operating profit dropped by 21 per cent in the third quarter 2008. Operating profit for the quarter was 1.46 billion euros (1.98 billion dollars), compared to 1.86 billion euros for the corresponding business period in 2007. "The world is made up of many markets with quite different growth prospects," Chief Executive Olli-Pekka Kallasvuo told analysts during a conference call after the third quarter report was released. China, India, Asia-Pacific, the Middle East, Africa and Latin America all have mobile phone markets that continue to grow, he said, noting that many consumers in these regions were used to "volatility" and swings in monthly income. Kallasvuo noted that, earlier this year, surging oil prices and food had "clearly reduced the disposable income," but noted commodity prices had declined along with global stock markets. Nokia was "closely" monitoring developments, he said. He repeated his confidence in the group's brand, scale, and product line. Nokia estimated that its share of the global handset market in the third quarter of 2008 was 38 per cent, compared with 39 per cent in the third quarter of 2007 and 40 per cent in the second quarter 2008. In its outlook, Nokia said it expected the global mobile handset market to grow in the fourth quarter, while Nokia's share of the global market would remain steady or rise slightly. The total global handset market for 2008 was estimated at some 1.26 billion units. Nokia's third quarter sales of mobile phones increased by 5 per cent year-on-year to 117 million units, but dropped 3 per cent compared to the second quarter of 2008. The group said it sold 27.4 million units in Europe, 33.6 million units in Asia and the Pacific region, 19.8 million units in China and 21.5 million units in the Middle East and Africa. Sales in Latin America were down 28 per cent to 15.3 million units, compared to second quarter 2008, and were flat in North America. The overall drop in sales of handsets between the second and third quarters of 2008 was due to a "tactical decision" not to slash prices as some rivals had, as well as "overall market competition," Nokia said. Kallasvuo said Nokia "did not intend to give the competition a free ride and the economic reality will apply to them." Other trends included lower average selling prices for its handsets. Nokia said the average selling price of its mobile devices in the third quarter of 2008 was 72 euros, down from 74 euros in the second quarter 2008, and 82 euros in third-quarter 2007. Net sales for the 50-50 joint venture Nokia Siemens Networks - launched last year between Nokia and Germany's Siemens - dropped 5 per cent to 3.5 billion euros year-on-year. The operating loss was 1 million euros, compared to a loss of 120 million euros in the third quarter of 2007.
