March 12, 2010 / 3:51 PM / 8 years ago

Nokia trims share of larger handset market

HELSINKI (Reuters) - Nokia Oyj lowered it share of global handset sales after recalculating the size of the market and the scale of the growing “grey” sector in unlicensed and counterfeit phones.

A test version of Nokia's Ovi Store is seen in a picture taken in Helsinki May 14, 2009. REUTERS/Tarmo Virki

Nokia said on Friday the cellphone market totaled 1.26 billion phones last year, above its earlier forecast of 1.14 billion, and reduced its share of sales to 34 percent from an earlier forecast of 38 percent.

Research group Gartner said the grey market — mostly in China, India and Latin America — totaled 145 million phones last year.

Nokia said new measurement tools enable it to better estimate the number of handsets being sold by some new players.

“These include vendors of legitimate, as well as unlicensed and counterfeit, products with manufacturing facilities primarily centered around certain locations in Asia and other emerging markets,” Nokia said.

Nokia repeated it expected the overall 2010 phone market to grow 10 percent while its market share would be unchanged at 34 percent.

The comments boosted Nokia shares, which trimmed an earlier high of 10.91 euros to settle at 10.80, up 2 percent, by 1539 GMT.

“This is a good thing for Nokia because it is really showing that they want to measure the real market and grey market has been a big driver in 2009,” said Gartner analyst Carolina Milanesi.

“It is an opportunity for them to go after and try and actually win over users in that segment as well,” he said.

Reporting by Tarmo Virki and Terhi Kinnunen; Editing by David Cowell

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