BBC News Online: Business

Nokia trumpets trade rebound

The Finnish-based firm forecast sales growth hitting 25-35% by the end of next year.

And it restated a target of claiming a 40% share of the mobile phone market, which company economists believe will grow from 1 billion subscribers next year to 1.5 billion by 2005.

The data was welcomed by technology analysts as a sign of growing confidence within the sector over future market conditions.

Many technology firms have continued to give vague pronouncements over the trade outlook, complaining typically of "poor market visibility".

But a warning by Nokia that handset sales this were likely to come in at 380 million, 10 million short of previous forecasts, sent shares in the firm lower.

"[Nokia's]estimate for cellphone volumes was maybe a slight disappointment, which explains why the stock is falling," said Mika Paloranta, senior analyst at Nordea Securities in Helsinki.

Nokia shares ended 6.3% lower at 26.45 euros.

Commitment restated

However, the firm stuck by forecasts for commitment to commence shipments of updated third-generation (3G) mobile phones during the second half of next year.

"The company believes that 3G phones should account for roughly 10% of all mobile phone unit sales in 2003," the firm said.

In the market for mobile network infrastructure, Nokia predicted "flat to slightly positive" trade next year.