About this weblog

What you need to know: This weblog captures key data points about the global telecoms industry. I use it as an electronic notebook to support my work for Pringle Media.

Monday, February 21, 2011

Nokia Sets New Course

On February 11th, Nokia said it expects "attractive mobile device industry revenue growth in 2011 and over the longer-term, driven by the further adoption of smartphones by consumers globally and the further adoption of mobile devices and services, particularly in emerging markets."

The world's largest handset maker also said it expects 2011 and 2012 to be transition years, as the company invests to build "the planned winning ecosystem with Microsoft."

Nokia added that it expects the mobile and fixed infrastructure and related services market to grow slightly in 2011 and that Nokia Siemens Networks' net sales to grow faster than the market.

Nokia also said that there are currently 200 million people worldwide using handsets running the Symbian operating system and that it expects to sell approximately 150 million more Symbian devices in the years to come. source: Nokia statements

Why Microsoft?

Nokia's official blog described the deal with Microsoft as working like this: "Nokia pays Microsoft royalties, it gives Microsoft unprecedented reach, it also gives them access to services such as Maps. Nokia’s hardware expertise creates devices that truly let the Microsoft’s new OS shine.

"In return, Nokia gets a substantial reduction in its operating expenses; it gains a range of services to enrich its smartphone offering. There’s a new revenue stream for Nokia in the form of mobile advertising. It gets marketing support with a value of billions of dollars.

"The real point is that there’s a co-dependency between Nokia and Microsoft – both partners need the other to fully succeed. That’s part of what makes it the right choice." source: Nokia blog entry

In a speech at the Mobile World Congress, Stephen Elop, CEO of Nokia, said: "80% of the world's population today are in cell phone signal range, and yet only 20% of them are connected to the Internet." source: Mobile Business Briefing.  

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