Nokia Reveals Its Objectives & Estimates for 2010
One of the leading mobile phone manufacturers, Nokia used its Annual Capital Market Event to unravel its objectives and aspirations for the year 2010. In their announcement, Nokia expressed the resolve to improve on their execution and take more advantage of the competitive edge they already have. Nokia also exhibited the newly added advancements to the Symbian user interface.
Nokia’s Chief Operating Officer, Olli-Pekka Kalasvuo said, “In 2010, we will drive user experience improvements, and the progress we make will take the Symbian user interface to a new level”. Considering the greater level of adaptability shown by Symbian operating system in comparison to other platforms, Nokia is considering placing new prices for smartphones all around the world, in the midst of ever growing profit margins. “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”, the CEO had to say.
Nokia’s estimates show that market for mobiles will be experiencing a great 10% growth level in comparison to 2009. While the company expects no change in the volume of shipments, there is much anticipation that Nokia’s mobile device value market share will see a slight growth. And in the middle of all these forecasts, a “lower average selling price (ASP) erosion of its mobile devices in 2010” is also waiting in the wings.
Nokia announced the following targets to be achieved in the coming years:
- Nokia expects to incur EUR 5.7 billion in 2010 on non-IFRS operating expenses in the Devices and Services division.
- Nokia also aims to bring non-IFRS R & D expenses in Devices and Services in 2010 below the range of 10% of the net sales, while the margin in the same division is expected to fall in-between 12 percent to 14 percent.
- Nokia is continuing to target minimum Services net sales of EUR 2 billion in 2010, while it aspires to bring in 300 million users worldwide under its umbrella by the same year.
As for Nokia-Siemens Network the following forecasts were announced by Nokia:
- Nokia Siemens Network is expected to grow at a faster rate in 2010
- As compared to 2009, both Nokia and the Nokia Siemens Network will experience an unchanged market with respect to Euro in infrastructure building and associated services.
- Non-IFRS operating margin will be at a 2% of the breakeven in 2010 for Nokia and Nokia Siemens Network, while the Network also targets at reducing its non-IFRS operating and production expenses to EUR 5 million till the end of 2011.
Nokia has plans to provide users with a better experience, a rejuvenated user interface with Symbian and at releasing a device powered by Maemo 6 OS for the very first time. Nokia aims at expanding the Services business and at offering increased number of QWERTY and touch devices. By reaching the potentially rising market and aiming to “optimize the industry’s lowest cost end-to-end business model in Mobile Phones” Nokia is showing the intent that is required to become the leader in this industry.
