At its annual Capital Market Days event, Nokia presented its forecasts for the industry and its financial targets for the next one to two years. In his keynote presentation, Nokia President and CEO Olli-Pekka Kallasvuo said, "To enjoy the full benefits of the continuing growth of the global device market that Nokia expects, we've made a number of important strategic moves and organizational changes, and have put our marketing and design efforts into a sharper focus. With these changes, and more to come, we believe Nokia has the power to build a further improved portfolio of devices that raises industry standards to a whole new level."
Kallasvuo also described the unique opportunity he believes Nokia has to mobilize the internet for the mass market. "With an estimated 850 million Nokia device users out there, we are positioned to connect more people to the internet than any other company in the world. We are actively aligning our strategy in pursuit of this major business opportunity."
Nokia says that it expects industry mobile device volumes in 2007 to grow by up to 10% from the approximately 970 million units Nokia estimates for 2006. They expect the volume growth in 2007 to be above 15% in Asia Pacific, China, and Middle East & Africa, and below 10% in Europe, Latin America and North America.
Nokia expects the device industry to experience value growth in 2007, but expects some decline in industry ASPs, primarily reflecting the increasing impact of the emerging markets and competitive factors in general.
Nokia now forecasts that the three billion mobile subscriptions mark will be reached in 2007, instead of in 2008 as Nokia forecasted previously.
Nokia also expects its operating margin to fall to 15% during the next one to two years. This target is revised from the one to two year 17% operating margin target Nokia set in December 2005, primarily due to Nokia's increased exposure to the infrastructure market following the expected start of operations of Nokia Siemens Networks."
Posted to the site on 29th November 2006
Posted to: www.cellular-news.com/story/20646.php