Nokia cuts shipments as phone sales slow

Finnish mobile phone manufacturer Nokia is set to reduce shipments of its products, in a sign the economic downturn will affect the sales of mobile phones.

In a statement, Nokia – which owns 40% of the mobile phone market – says it will reduce the number of its phones by 20 million in the fourth quarter, with more reductions in 2009.

“In the last few weeks, the global economic slowdown, combined with unprecedented currency volatility, has resulted in a sharp pullback in consumer spending,” the group says.

But it is confident next year will see Nokia as a major player, with the likely introduction of more smartphones to compete with Research in Motion’s BlackBerry and Apple’s iPhone.

“Nokia believes that its advantages of scale, leading brand, superior logistics, low cost, and broad product portfolio are competitive advantages that will enable us to distinguish ourselves from the competition in a challenging 2009,” CEO Olli-Pekka Kallasvuo said in a statement.