Sector Snap: Nokia's sales drag on phone makers

Sharp drop in Nokia sales sends mobile phone makers' shares sliding

• On 2:35 pm EDT, Thursday October 15, 2009

SEATTLE (AP) -- Shares of major cell phone makers dipped Thursday after Finland-based Nokia Corp., the world's largest mobile phone company, posted a sharp decline in sales for the third quarter.

Nokia said parts shortages were partly to blame for falling revenue. The company also said it fell to a loss in the quarter after writing down more than $1 billion to reflect the sinking value of its joint venture with Siemens AG.

Nokia said it expects the drop in demand for mobile phones to level out in the fourth quarter, though volumes will still decline for 2009 as a whole.

Shares of Nokia plunged $1.72, or 11.2 percent, to $13.67 in afternoon trading.

Other wireless handset makers' shares declined Thursday in response. Motorola Inc.'s stock sank 42 cents, or 5 percent, to $7.99 in afternoon trading. Palm Inc. saw shares sink 68 cents, or 4 percent, to $16.26.

Shares of Toronto-based Research In Motion Ltd., which makes the Blackberry line of smart phones, slipped 89 cents to $68.31.

Apple Inc., maker of the iPhone "smart" phone, saw its stock dip $1.59 to $189.70.