Nokia defines set goals for coming years — MobileMonday Global: Industry News

^{Handset margin target is 17%} Nokia defines set goals for coming years

5 Nov 2004 at 05:00 GMT Timo Poropudas

At the annual Nokia Capital Market Days in New York, Nokia senior management set out clear targets and milestones the next few years. of years. Nokia expects the mobile device industry in 2005 to grow approximately 10 percent in volume from the 630 million units Nokia estimates for 2004. Nokia targets somewhat faster than market growth in mobile devices in two to three years.

The value growth will be less and unit growth, Nokia estimates.

The global mobile subscriber base to surpass two billion users in 2006.

The growth driver will be camera phone segment that is expected to reach more than 600 million units in 2008. In the same timeframe the smartphone market is expected to grow to be more than 200 million units.

Nokia predicts the overall mobile infrastructure market in 2005 to be slightly up compared with 2004 in euro terms and the company targets somewhat faster than market growth for next two to three years. The operating margin target is set for 14 percent.

Enterprise Solutions unit should reach breakeven in the first half of 2006.

Nokia is seeking better profitability by lowering overall R&D expenditure to 9 percent - 10 percent of net sales by the end of 2006. Nokia mobile device R&D expenditure will be down to 8 percent of net sales, and infrastructure R&D expenditure down to 14 percent of net sales.

40 new devices in 2005

"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 CEO Jorma 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 percent.

Hardware to be customized, too

Nokia says that customization is an important element to gain greater customer satisfaction. Nokia is collaborating with operators on product planning as well as accelerating product hardware and software customization programs designed to drive a competitive advantage.

Of the mobile devices Nokia plans to ship in 2005, approximately 90 percent will support software customization and nearly a quarter will have operator-exclusive hardware designs. To strengthen consumer loyalty, the company continues to renew its leading brand equity.