Instead of horizontal units covering mobile phones, which dealt with the mass market; multimedia, catering for younger and more creative users by incorporating music players and cameras; and enterprise solutions, which offered smart phones for business users, there will now be a single devices unit.
CEO Olli-Pekka Kallasvuo said the convergence of the mobile communications and internet industries is opening up new growth opportunities, both in the devices business as well as in consumer internet services and enterprise software. He said consumer demand for rich, mobile experiences creates an opportunity for change and Nokia will bring these capabilities to the broadest range of devices and price points.
Kallasvuo said this would unleash the power of Nokia’s device volumes, now coupled with new services and business solutions, and will set it apart from point solutions vendors.
He said emerging markets are the main driver of growth where Nokia is able to make profits on low-cost handsets while it closest competitor Motorola has been plunged into losses.
Espoo, Finland-based Nokia said the new organization will enable it to manage its device portfolio with greater effectiveness, speed up time to market for new products, and increase the efficiency of its marketing efforts.
When the new organization becomes effective on January 1, 2008, Nokia will have two reportable segments: Devices & Services, and Nokia Siemens Networks.
