Nokia sees positive revenue growth in mobile device industry this year

CEBU, Philippines - With the acceptance of smartphones in the global market, including the Philippines, Nokia announced its aggressive move to take advantage of the opportunity despite the stiffer competition of mobile phone device market.

In a press statement, Nokia expects attractive mobile device industry revenue growth this year, and over the longer term, driven by further adoption of smartphones by consumers globally and the further acceptance of mobile devices and services, particularly in emerging markets. Although, it anticipates a more pressured mobile device industry gross margins due to competition.

In connection with this new strategic direction, Nokia has set new financial targets and forecasts for Nokia and the mobile device industry and for Nokia Siemens Networks and the mobile and fixed infrastructure and related services market.

Nokia expects 2011 and 2012 to be transition years, as the company invests to build the planned winning ecosystem with Microsoft. After the transition, Nokia targets longer-term: Devices & Services net sales to grow faster than the market, and Devices & Services non-IFRS, operating margin to be 10 percent or more.

Nokia and Nokia Siemens Networks expect overall industry revenue to grow slightly in 2011, compared to 2010.

While growth is expected in certain areas, such as mobile broadband and services, this is expected to be offset to some extent by declines in certain areas and a continued challenging competitive environment.

Additionally, Nokia and Nokia Siemens Networks continue to target Nokia Siemens Networks to reduce its non-IFRS* annualized operating expenses and production overheads by EUR 500 million by the end of 2011, compared to the end of 2009.

Meanwhile, Nokia and Microsoft recently announced plans to form a broad strategic partnership that would use their complementary strengths and expertise to create a new global mobile ecosystem.

Nokia and Microsoft intend to jointly create market-leading mobile products and services designed to offer consumers, operators and developers’ unrivalled choice and opportunity.

As each company would focus on its core competencies, the partnership would create the opportunity for rapid time to market execution.

Additionally, Nokia and Microsoft plan to work together to integrate key assets and create completely new service offerings, while extending established products and services to new markets.

Under the proposed partnership, Nokia would adopt Windows Phone as its principal smartphone strategy, innovating on top of the platform in areas such as imaging, where Nokia is a market leader.

With this, Nokia is expected to help drive the future of Windows Phone. The mobile phone maker also would contribute its expertise on hardware design, language support, and help bring Windows Phone to a larger range of price points, market segments and geographies.

“Today, developers, operators and consumers want compelling mobile products, which include not only the device, but the software, services, applications and customer support that make a great experience,” said Stephen Elop, Nokia President and Chief Executive Officer (CEO).

For his part, Steven A Ballmer, Microsoft CEO said that ecosystems thrive when fueled by speed, innovation and scale.

“The partnership provides incredible scale, vast expertise in hardware and software innovation and a proven ability to execute,” Ballmer concluded. – THE FREEMAN