Nokia executives, looking to position the company for a successful
2010, offered a broad assessment of the entire mobile industry, at the
phone maker’s annual Capital Markets Day event in Helsinki, Finland, on
Dec. 2.
At the event, Nokia executives discussed several ways the company is
looking to achieve and sustain successes in the mobile device market in
2010. Part of that strategy includes demonstrating improvements to an
upcoming version of the Symbian user interface.
Nokia’s 2010 forecast comes at time when it’s facing increasing
competition from the likes of Apple’s iPhone, Research in Motion’s
BlackBerry and a slew of Android-based devices in the global handset
market.
While the largest mobile handset maker in the world, Nokia’s market
share has slipped during consecutive quarters, with the company seeming
to struggle to again find the right path forward. In
a Nov. 23 research note, Mark McKechnie, an analyst with Broadpoint
AmTech, wrote that he expected Nokia to set a strategy at the meeting
that included meeting large-volume orders with Symbian phones, and
Maemo and Linus phones on the high end.
And indeed, Nokia said it has big plans for Symbian.
“In 2010, we will drive user experience improvements, and the progress
we make will take the Symbian user interface to a new level,” said
Nokia CEO Olli-Pekka Kallasvuo, according to a statement from Nokia.
“As an operating system, Symbian has reach and flexibility like no
other platform, and we have measures in place to push smartphones down
to new price points globally, while growing margins,” Kallasvuo
continued. “I see great opportunity for Nokia to capture new growth in
our industry, by creating what we expect to be the world’s biggest
platform for services on the mobile.”
Nokia forecasted that in 2010, mobile device volumes will increase
approximately 10 percent over 2009 numbers. Timo Ihamuotila, Nokia’s
chief financial officer, said the company was well-positioned to take
advantage of this growth.
“Going into 2010, the overall mobile devices market is stabilizing and
it is growing more in the areas where Nokia has competitive
advantages,” said Ihjamuotila. “We believe that by executing on the
operational priorities we have set, Nokia will be competitive in both
mobile phones and smartphones and will improve its value share.”
Executives announced that Nokia will re-engineer the Symbian user
interface, and introduce a “major product milestone” before the middle
of 2010, and again toward the end of the year.
Other specified goals were to deliver Nokia’s first Maemo 6-powered
mobile computer in the second half of 2010; to increase the portion of
touch and QWERTY devices in its smartphone portfolio; to expand its
services business; to provide developers with better tools, to help
grow the Ovi ecosytem; to further optimize the business model for the
industry’s lowest-cost mobile phones; and to continue building its
service offerings to emerging markets.
Nokia is targeting to have its services sector deliver net sales of 2
billion Euro, or approximately $3 billion, in 2011, and to have 300
million active users for its services by the end of 2011.
In a Dec. 2 note, Broapoint AmTech’s McKechnie said Nokia’s
announcements were in line with his expectations, and went on to write
that Nokia’s “European and emerging market strongholds [are] challenged
by wider iPhone and Blackberry distribution. We remain concerned that
despite a recovery for the overall industry in 2010, smartphone
competition will move aggressively to [Nokia’s] ‘backyard’ in Europe.”
He went on to say Broadpoint remains concerned about “weak smartphone
unit shipments,” and Nokia falling behind Research In Motion and Apple
in the smartphone race.
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