Nokia Corp. (NYSE: NOK) has indicated last week that total market shipments for global wireless handsets would fall by 5% in 2009, signaling that even the world's top wireless handset maker won't be immune from customer spending slowdowns. Nokia's second warning in three weeks came on the heels of the company's announcement of a high-end new handset meant to compete with the iPhone 3G, the Nokia N97. However, Nokia did predict that its own market share would increase in 2009.

Nokia CEO Olli-Pekka Kallasvuo told CNBC "The most recent incremental impact in the emerging markets has been more pronounced than in other markets." He added that while 2009 will be challenging, Nokia's position will continue to strengthen. Indeed, all the flash of newer smartphones and higher-end cellphones may lose quite a bit of luster as customers reign in spending next year.

Nokia's economy of scale will keep it positioned ahead of the pack. The company did not become the world's largest handset supplier without having solutions available for every market segment, from emerging markets to the very high end market that the N97 will be targeting soon. Still, will many customers really pay $400 and up for a cellphone in this environment? Apple, Inc. (NASDAQ: AAPL) may even see a slowdown for its venerable iPhone 3G, which only costs $200 in the U.S. with a two-year contract.

Story corrected: 10:00am CST, 8-Dec-08

It is going to be a strong open today for Nokia Corp. (NYSE: NOK) following its strong second quarter earnings report. Not only was the company able to beat earnings estimates, but it also grew its market share by 4% year over year.

For the quarter, Nokia earned 32 euros per share, ahead of analysts' forecasts of 25 euros. On top of the strong earnings, the company also showed its highest operating profit margin in three years at a respectable 18.7%.

As we mentioned earlier, the company has been able to manage a 4% growth in global market share over the past 12 months, and half of that growth was witnessed during its recent quarter. At the end of the first quarter, the company claimed 36% of the global market, so a jump up to 38% was a very strong move to make over three months.

Looking forward to the full year 2007, the company now expects global device volumes to move higher by at least 10%. This is slightly more optimistic than its previous estimates of volume growth rising up to 10%.

All in all it was a great quarter, and one that should be rewarded on Wall Street. Look for a very strong today for this Finnish company!

Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor's Observer.