Nokia Sets Market Goals

Nokia defines goals and actions for leadership in dynamic mobile communications market

November 4, 2004

2 Min Read

HELSINKI -- At the annual Nokia Capital Market Days in New York, Nokia senior management set out clear targets and milestones to hone existing and build new competitive advantages for continued leadership in the dynamic mobile communications market.

Nokia expects:

  • the mobile device industry in 2005 to grow approximately 10% in volume from the 630 million units Nokia estimates for 2004 and to grow also in value, but to a lesser extent

  • the annual 2008 camera phone market to be more than 600 million units and the smartphone market to be more than 200 million units

  • the global mobile subscriber base to surpass two billion users in 2006

  • the overall mobile infrastructure market in 2005 to be slightly up compared with 2004 in euro terms

Nokia targets:

  • somewhat faster than market growth in mobile devices and infrastructure

  • to achieve a mobile device operating margin of 17% - 18% in the medium term (two to three years)

  • to achieve an infrastructure operating margin of 14% in the medium term (two to three years) Enterprise Solutions now to reach breakeven in the first half of 2006

  • by the end of 2006 to bring overall Nokia R&D expenditure down to 9% - 10% of net sales, Nokia mobile device R&D expenditure down to 8% of net sales, and infrastructure R&D expenditure down to 14% of net sales

"Industry dynamics have shifted, and we have been adapting our mindset, customer approach, product portfolio and technologies to sharpen our competitive position," said Jorma Ollila, Chairman and CEO, Nokia.

Nokia presented five priorities to strengthen its market leadership:

  • product competitiveness

  • customer satisfaction

  • R&D effectiveness

  • demand-supply network alignment

  • end-to-end capability

"We profitably compete in all mobile device segments from entry-level to high-end, and our volume advantage and cost leadership make this possible," said Ollila. Nokia aims to increase its competitiveness by broadening its product portfolio and launching approximately 40 new mobile devices in 2005. Variety in Nokia's offering will be enriched in 2005 when approximately two-thirds of Nokia's mobile device launches are targeted to have cameras and more than half are expected to be clamshells, slides and other non-monoblock models. Nokia's long-term mobile device market share ambition remains 40%.

Nokia Corp.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like