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Nokia: Device Volumes up 10% in 2010

Nokia Corp. (NYSE: NOK) announced during its Capital Markets Day event today that it expects industry-wide mobile device shipment volumes to increase by 10 percent in 2010 compared to 2009.

As the world's largest mobile handset maker, Nokia's outlook on the market has weight.

The Finnish phone maker also shared some insights into how it expects to fare next year amidst the overall industry handset growth. Nokia said it expects its mobile device volume share to be flat in 2010, compared with 2009, and that it expects the erosion of its average selling price (ASP) in mobile devices to be lower in 2010, compared to recent years.

In addition, Nokia is aiming to increase slightly its "mobile device value market share" in 2010, compared with this year.

So, in other words, Nokia's targets for 2010 are for flat device volume share, less ASP erosion, and a bit better value market share.

"We have worked hard to transform Nokia for a rapidly changing industry," said Nokia CEO Olli-Pekka Kallasvuo during his Capital Markets Day presentation, which was Webcast. (See Nokia Lays an Egg & Scrambles It Too!)

Kallasvuo said the company has met or exceeded its plans to reduce operating expenses this year as well. He said Nokia cut its opex run rate by about €1 billion (US$1.5 billion) in 2009.

For 2010, Nokia said it expects its operating expenses in the devices and services unit to be approximately €5.7 billion ($8.6 billion).

Some of those cost savings have come from cuts in the company's research and development in Denmark, Finland, and Japan, as Nokia has streamlined its product portfolio. (See Nokia Cuts Back R&D and Nokia Cuts 220 Jobs in Japan.)

Next year, Nokia said, it aims to bring R&D costs in its devices and services unit to less than 10 percent of net sales.

— Michelle Donegan, European Editor, Unstrung

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