The mobile phone market will stage a faster-than-anticipated recovery in 2010, the chief executive of the world’s largest phone manufacturer has predicted.
Addressing shareholders at Nokia’s AGM, Olli-Pekka Kallasvuo forecasted that phone volumes will grow by ten per cent next year, as consumer demand returns across the sector.
Mr Kallasvuo’s prognosis is significantly ahead of analysts who have collectively predicted a figure of 8.6 per cent.
However, the next 12 months see no abatement in ongoing price deflation for handsets, which will continue to eat into manufacturers’ profit margins.
News of developments at the Finnish telecoms giant comes as it has recently been undertaking an extensive cost-cutting exercise.
This has seen the loss of hundreds of jobs in its research and development departments in Finland, Japan and Denmark.
The efficiency drive is intended to cut costs by £905 million per year and restore the company to profitability after it recently recorded its first quarterly loss this decade.
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