Nokia CFO Sees Market-Share Gains in 2008

NEW YORK -(Dow Jones)- Nokia should gain market share this year because of the areas in which it operates, according to Chief Financial Officer Rick Simonson.

The Finnish cellphone giant has roughly half the share of entry-level phones and smartphones, which are both expected to grow faster than the overall market, Simonson told analysts during an analyst call hosted by JPMorgan. The event was broadcast on the Internet.

Nokia also has a 45% share of phones using GSM technology, and a 40% share in phones using a next-generation technology called WCDMA, which are expected to grow faster this year.

The three areas should contribute to a 1% market share gain, he said.

Nokia holds the dominant market-share position in the world, followed by Samsung Electronics and Motorola, which has been steadily losing share.

Nokia, however, is far behind in the North American market, where it has ceded share after refusing to meet the demands of the dominant U.S. carriers. Simonson acknowledged that much of the growth in the higher-end smartphones is in the U.S., and vowed to more aggressively penetrate the region.

In regard to rivals taking aim at Nokia with improved products, Simonson said he is comfortable with his company's portfolio of current and upcoming devices.

While the handset business is driven by "hits," no one, successful phone will change the company, Simonson said. He pointed to Motorola and the Razr, which is among the highest selling phones of all time. "The Razr was a hit, but there was no foundation," he said.

Further down the line, many of the carriers have committed to a future technology called LTE, which Simonson said plays well into Nokia's strength.

Simonson declined to comment on the potential use of Google's mobile operating system Android, but noted that Nokia "embraces openness."

On Nokia's dispute with Qualcomm over licensing fees, Simonson said he prefers to get an agreement through negotiation, but is willing to let the legal process continue. Bigger than any settlement is the notion that no one company should hold up the wireless industry and innovation with burdensome royalties, he said.

-By Roger Cheng, Dow Jones Newswires; 201-938-2020; roger.cheng@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 19th May 2008