Total
market volumes estimated to rise approximately 10% year on year in 2003
with mobile subscriptions reaching 1.6 billion by end 2005.
Inset is Jorma Ollila,
Chairman and CEO of Nokia.
At the company's
annual mid-year strategy update in Finland on Wednesday, Nokia top management
reiterated its belief in the long-term growth opportunities of the mobile
industry.
While general economic uncertainties continue to impact demand, Jorma
Ollila, Chairman and CEO, said Nokia believes the market was capable
of growing volumes for 2003 by approximately 10%, up from the 405 million
units in 2002. The company also raised its estimate for the total number
of mobile subscriptions to reach 1.6 billion by the end of 2005.
Mobilizing imaging, games and enterprise
As mobility expands into new business areas like imaging, games and
enterprise, Nokia believes the opportunities for value creation increase
markedly.
In imaging, camera phones are now being positioned across the mobile
market from low to high-end products, with volumes estimated to surpass
digital still camera market volumes by the middle of 2003. Nokia has
already announced five different camera phones with more to follow in
the second half of this year. In order to drive up penetration, the
company is also working to bring the integrated camera feature as quickly
as possible to lower priced mobile devices.
In entertainment, Nokia sees mobility as the next big thing for the
USD 30 billion games market. The Nokia N-Gage, scheduled to be available
globally on October 7, will bring on-line and multiplayer games to consumers,
independent of time and place.
Mobilization of enterprise processes also presents a big opportunity
to expand Nokia's product range. In Europe alone, 50 million mobile
professionals already spend at least one day per week outside the office.
Nokia to ship first WCDMA phones
In next generation technologies, the company today reconfirmed the availability
of the Nokia 6650 GSM/WCDMA mobile phone to selected operators within
this month. During the past 12 months, Nokia has conducted the mobile
industry's largest ever field pilot and testing program, using close
to 20,000 Nokia 6650 phones in practically every WCDMA network in the
world.
Nokia Networks targets WCDMA market leadership
At Nokia Networks, previously announced restructuring continues as planned.
The division is moving towards a more focused, flexible organization
that reflects current operator spending levels, while matching management
objectives of increased market share, sustainable profitability and
higher product and process quality.
The company sees strong opportunities in mobile voice, mobile data and
the substitution of fixed to mobile infrastructure. In WCDMA, Nokia
has already gained more than 30% of the market and currently leads the
industry in WCDMA deployment, with over 20,000 base stations shipped
globally. Nokia believes it is well on track to achieving its targeted
35% market share in WCDMA networks.
Nokia long-term target to lead CDMA market
In line with Nokia's long-term target to become the leading CDMA mobile
device manufacturer globally, the company has already launched seven
new 1X products this year. The positive effects of this expanding product
range, combined with closer collaboration with CDMA carriers, has enabled
Nokia to see an increase in CDMA market share during the second quarter.
The recent announcement with STMicroelectronics (STM) and Texas Instruments
(TI) to offer a joint CDMA chip set was also an important step in building
a more balanced CDMA business system. In combining their CDMA expertise,
the companies will provide new opportunities for handset vendors and
carriers, while bringing greater economies of scale to the CDMA market
overall.
Nokia makes positive developments in China and India
In China, the company continues to focus on growing market share and
leveraging the strong Nokia brand preference there. This year, Nokia
has already seen its market share position stabilize. This largely reflects
substantial improvements in Nokia's China distribution system as well
as continued localization of its mobile phone product portfolio. The
recently launched Nokia 6108, a pen-based messaging device designed
for texting in Chinese, is a good example of a locally relevant product.
Building a strong presence in CDMA is also an important factor in increasing
overall market share in China and India. As previously announced, Nokia
last week received an official license to manufacture and market CDMA
phones in China. Sales are expected to start during the second half
of this year.
Nokia sees market share gains during 2Q in the US
In the US, Nokia is targeting clear leadership, with a primary focus
on increasing and sustaining market share gains across all trade customers
and all technologies. During the first half, the company has already
launched 17 new phones to the Americas market. Early indications in
the second quarter point towards significant market share gains in the
US market.
