Nokia - Nokia Raises Global Mobile Growth Estimate

Nokia Raises Global Mobile Growth Estimate
Nokia Raises Global Mobile Growth Estimate, Launches New Handsets for Asian Markets

HELSINKI, Finland (AP) -- Nokia Corp. raised the global growth outlook for mobile devices Thursday as the world's largest cell phone maker anticipated huge demand from emerging markets in Asia and Africa.

Nokia raised its estimate for worldwide sales this year to 915 million, or 15 percent over 2005. The Finnish company had earlier predicted a 10 percent global increase in mobile handsets from an estimated 795 million units in 2005. It did not forecast its own growth or sales for the rest of the year.
Mobile phone companies saw their shares climb Thursday.

Separately, Nokia announced the launch of three low-priced handsets in China, in a bid to win new phone users in Asia.
Chief Executive Jorma Ollila said the company was "well placed for some new innovative leaps," although he did not give details.
"In addition to continuous growth in voice communication, other industries like music and digital imaging are quickly becoming more integral to mobility," Ollila said at the company's annual general meeting in Helsinki.

The news sent Nokia's stock price up 4.8 percent in Helsinki to close at euro17.49 (US$21.15).
Its American depositary shares rose 75 cents, or 3.7 percent, to $20.97 in afternoon trading on the New York Stock Exchange. Earlier in the session, the stock hit a fresh 52-week high of $21.36. In the past 12 months, the company's shares have changed hands between $14.52 and $20.77.

Motorola Inc., the second-largest cell phone maker in the world, saw its shares rise 46 cents, or 2 percent, to $23.23 on the NYSE.
Inder M. Singh, an analyst for Prudential Equity Group, said in a client note that Nokia's raised outlook should bode well for Motorola as well as Qualcomm Inc., a maker of chips used in wireless communications equipment.
Shares of San Diego-based Qualcomm climbed 55 cents to $51.14 in afternoon trading on the Nasdaq Stock Exchange.
U.S. shares in LM Ericsson Telephone Co. -- which makes wireless telecom equipment such as antennas and transmitters and sells cell phones through a joint venture with Sony -- rose 93 cents, or 2.4 percent, to $39.13 in afternoon trading on the Nasdaq.
Albert Lin, an analyst for American Technology Research, said in a note to clients earlier this week that global markets outside North America will "shock investors with the rate of growth and appetite for upgrading."
Ollila said Thursday that 80 percent of total growth will be in emerging markets, with mobile phone subscribers reaching 3 billion in 2008.
"There is huge diversity between geographic areas and markets in terms of consumer preferences and behavior," the Nokia chief said.
Nokia's three new models -- Nokia 1112, Nokia 2310 and Nokia 2610 -- are expected to retail for $54 to $90 and will be available in the second half of the year, Nokia said. The handsets will be easy-to-use and reliable to attract first-time users, the company said.
Nokia, which claims to be the market leader in China and India, has increasingly turned its attention to Asia from Europe, where mobile phone levels are reaching saturation point.
Last year, China became Nokia's largest single market -- overtaking the United States -- with net sales growing 28 percent to $4 billion.
Earlier this month, Nokia announced co-operation with Baidu.com Inc., a leading Chinese-language Internet search provider, to make mobile search easier and more convenient in Chinese-speaking markets, including Hong Kong and Taiwan.
Nokia is based in Espoo, just outside the Finnish capital. It has sales in 130 countries and 59,000 employees.