HELSINKI, FINLAND – Nokia Corp. has posted a 69% drop in profits for the fourth quarter, stemming from lost market shares and a lackluster demand for its phones during the holiday season.
 
Net profits fell to 576 million euros (US$751 million), compared to 1.84 billion euros (US$2.38 billion) in 2007. Sales fell 19% to 12.66 billion euros (US$16.39 billion), falling short of forecasts.

Fourth-quarter handset shipments dropped 15% to 113.1 million units, and handset sales fell 27%. The company saw its operating margin decline to 9.8%, compared to 16.7% in 2007.
 
As a result of its fourth-quarter figures, Nokia lowered its outlook for global industry mobile device volumes. It now expects to experience a 10% drop in 2009, compared to an earlier forecast of 5%.
 
The market share for the fourth quarter was estimated at 37%, compared to 40% in 2007. Nokia reported significant loses in the Middle East, Africa, North America and China but expects to keep its market share at 37% for the first quarter.
 
The company plans to cut approximately 1,000 jobs this year while increasing R&D operations in Romania and India. In addition, over 100 contract workers were temporarily laid off at the assembly plant in Cluj, Romania. Two Nokia subcontractors hired the workers.