Nokia announces goals

Nov 04 2004 - 10:05 AM ET | Nokia
At a meeting for analysys today, Nokia announced some of its goals and targets for the next few years. There are some interesting ones, espcially that Nokia is planning on launching over 20 clamshell phones in the next year (currently nokia only has a handful and none are popular): * Launching around 40 new mobile devices in 2005 of which two thirds will have cameras and more than half a fold-away clamshell design. * The market for mobile phones will grow around 10 percent in 2005 from the 630 million units it expects in 2004. * The mobile phone market's growth will be fastest in Latin America, Europe, the Middle East, Africa and North America, while Asia-Pacific and China will be slightly slower 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