"Nokia extended its already formidable dominance of the global handset business on Jan. 24, announcing it had achieved 40% market share in the fourth quarter of 2007. But perhaps the biggest surprise was that the Finnish company achieved this long-promised and psychologically important milestone while also becoming more profitable."
"Thanks to soaring sales in emerging markets, as well as growth in high-end phones, Nokia boosted profit in the fourth quarter of 2007 by 44%, to $2.68 billion, on sales of $23 billion. At the same time, average selling prices grew, and the operating margin on mobile phones rose to 25%, vs. 17.8% a year earlier."
Ewing notes that, the strong performance pushed Nokia's shares up 12.5% to $36.48. Although gloom 'n doom seems to be dominating many water-cooler conversations, the mobile-phone industry seems unfazed because consumers continue regarding phones
"as necessities and scrimp elsewhere if they have to buy new handsets."
That confidence translated to sales growth of 15.8% last year (1.15 billion units), according to market tracker ABI Research.