Demand for phones is decreasing

The world financial crisis of course affects manufacturers of phones and networking equipment as well. According to estimates of the Finnish manufacturer about 330 million handsets will be sold in the last quarter, which is 20 million more than the 310 million sold in the previous quarter, while the estimates for 2008 have been decreased a bit, from 1.26 billion to 1.24 billion. According to the manufacturer the increasing sales seem to have halted a bit. While the 1.14 billion estimated number is an 8.77% increase, there is a decline expected for next year both in sales and in profit. According to the estimates Nokia's market share could increase a bit by the end of the year. In order to maintain efficiency Nokia and Nokia Siemens networks have already introduced a number of cost-reductive plans, but further reductions are expected in the future, a key to these being the decrease in employement of contracted partners and external advisors. According to CEO Olli-Pekka Kallasvuo, the manufacturer will have no problem holding ground in the year 2009, which is filled with difficulties and challenges. This is mostly due to their brand being a trusted one, their great logistics, low price and the wide range of products offered.