"Nokia expects industry mobile device volumes to be up approximately 10% in 2010, compared to 2009," the Finnish company said.
"Smartphone (volume) growth will be significantly higher," Nokia's chief executive Olli-Pekka Kallasvuo said.
While the company expected its share of the overall market to be flat next year, the value of its market share in terms of euros would grow slightly.
In mid-October Nokia reported its first loss in a decade amid rising competition in the smartphone market from iPhone-maker Apple and Blackberry-maker RIM and problems with its Nokia Siemens Networks joint venture.
Nokia's third quarter net loss was €559 million ($844 million).
The group has announced more than 4,200 job cuts, including 1,300 voluntary departures, as part of a recovery programme launched in January.
Amid the global financial crisis many consumers have cut back on spending, which has also dented sales of mobile phones.
Nokia has estimated that around 1.12 billion mobile devices will be sold in the world this year, which is around seven percent less than last year.
But the mobile phone giant predicted the overall market was now stabilising.
Nokia said it aimed next year to increase profitability and forecast the operating margin in its Devices and Services unit would increase from 12% this year to 14% in 2010.
It also plans to cut research and development costs in the unit and has in recent weeks announced that it will cut some 550 R&D jobs.
"I believe Nokia is in better shape than our competitors. I mean that our challenges are clear but so is our direction," Kallasvuo said.
Nokia said it would continue to target all price ranges in all markets to reach varied customer groups, but would also streamline its smartphone portfolio next year.
Industry observers have said Nokia's outdated Symbian operating system, driving its smartphones, is one of the reasons why many consumers choose Apple's iPhone or RIM's Blackberry, which are easier to use.
Last month Nokia started to sell its N900 device, using the Linux-based Maemo platform, and has received good feedback on its browsing functions, but the Symbian platform will continue to be the biggest platform going forward.
"In 2010 you will see a new version of Symbian to be released," Kallasvuo noted.
Source: AFP
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