Nokia sees 10% growth in mobile market next year

Nokia sees 10% growth in mobile market next year

World’s largest mobile maker Nokia is very optimistic about next year’s mobile market scenario. The Finland based mobile manufacturer expects global handset sale volumes to grow by more than 10 percent in 2006 and also predicts slight to moderate growth in mobile networks. The company already has the distinction of selling around 33% of the mobile phones in the market today and they aim to further strengthen their position in the market.

The company predicts that the global market will grow even faster than it had previously expected, passing 3 billion subscriptions in 2008. they had earlier predicted that the world would have 3 billion mobile users by the year 2010. they were addressing their investors in presentations in New York and also claimed that they expect to further increase their market share in next year’s sales figures.

Nokia said that they not only expect the market to grow in terms of units sold but also in terms of overall value. Chief Operating Officer Olli-Pekka Kallasvuo said in a statement: “This industry is not ex-growth. This business is not terminal decline, this is in terms of ASPs and margins.” However, Nokia still requires to counter the effects of development markets, which prefer to buy cheaper mobile phones, which have lower profit margins.

The company also said that they are on target for its group-operating margin of 17 percent in the next one to two years.

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