Nokia Reports Declining Market Share, Stock Gets Hammered
September 6, 2008
Investor reaction to Nokia's market share woes.
It’s never a good thing when a company issues a press release for the sole purpose of dropping some bad news on the table. Today’s epic fail press release comes direct from Nokia, with this not-so-upbeat announcement:
“Nokia now expects its mobile device market share in the third quarter 2008 to be lower than in the second quarter 2008.”
And boy, what an impact. Shares of Nokia dropped almost 11% on the news.
Nokia cited three reasons for the market share decrease:
- Nokia’s “tactical decision” not to lower prices to match competition
- competition in general
- the temporary impact of a slower ramp-up of a mid-range Nokia device
So which mid-range Nokia device is to blame for Nokia’s current woes? No one knows for sure, but I’d guess one of the Supernova phones if anything. Or maybe the 6600 series?
[...] in September, Nokia announced that market share would fall in the third quarter, causing a virtual stock landslide (-11%). Well, the results are in, and yes, market share did [...]