Nokia reports that net profits fell to 122 million euros ($161.3 million), during the first quarter, with sales plunging more than 25% year-over-year and profits falling 90%. Yet Nokia shares are up 9% in pre-market trading. Why?
Because the world’s largest cellphone company effectively called the bottom of the cellphone market, says Business Insider. Nokia says it still expects the industry to shrink 10% in 2009 over last year, but that the worst damage is done.
Nokia has managed to hold onto its overall market share, says C/Net, but the company is still losing ground on smartphones. Apple’s iPhone and Research In Motion’s BlackBerry have come on stong while others, like Palm, are entering the market.
Nokia says their “budget smartphone,” the touch-screen 5800 XpressMusic is selling well. The company claims it shipped 2.6 million units during the first quarter. The device has a touchscreen and is specifically designed as a music player.