Nokia Raises Estimates, Underlining Industry Strength
By Carlo Longino, Thu Jan 08 21:15:00 GMT 2004
The world's biggest maker of mobile phones raised its fourth-quarter forecast today, saying sales of both handsets and network equipment were much stronger than expected -- backing up previous industry reports of strong sales before the holidays.
Nokia raised their profit and revenue estimates pretty significantly, which is big news given the company's last few quarters have been impacted by the weak dollar and declining average selling prices. But the real story here is that Nokia's taken advantage of the strong overall market -- and the rising tide should lift all ships.
Even network equipment sales, generally a black eye, should be 300 million euros higher than previously though, something analysts attribute to software upgrades, perhaps transitioning GPRS base stations to EDGE. But it reveals that operators are starting to loosen the purse strings a bit, and it will be interesting to see how Nokia's peers' Q4 results come in.