Nokia sees replacement sales share rising in 2008

HELSINKI, March 20 (Reuters) - The world's top cellphone maker Nokia (NOK1V.HE: Quote, Profile, Research, Stock Buzz) said it expects the replacement market, involving sales of new phones to consumers who already own one, to continue increasing its share of the total market in 2008.

Nokia said in a regulatory filing in the United States on Thursday it expects replacement sales to represent more than 70 percent of volume in 2008, versus just under 70 percent in 2007.

This month's warnings from Sony Ericsson (6758.T: Quote, Profile, Research, Stock Buzz)(ERICb.ST: Quote, Profile, Research, Stock Buzz) and Texas Instruments (TXN.N: Quote, Profile, Research, Stock Buzz) have increased investors fears of a slowdown in replacement sales.

Nokia said it expects features like colour screens, cameras, music players, and faster data conections over WCDMA networks to boost the replacement market.

"We also expect that e-mail and navigation capability will be increasingly significant drivers of the replacement market in 2008," the company said.

Nokia said it expects replacement sales in emerging markets to rise to more than 60 percent of market volumes in 2008 from more than 50 percent level reached last year. (Reporting by Tarmo Virki)